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CMSSXFIGAXIQN 


UA OFFICE OF STRATEGIC SERVICES 
Research and Analysis Branch 

12 

2 

4* 

s.<f / 9<fC 

R and A Mo. 878.13 

U,A. W <£ J SkAifiJLj 

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(StftnpMMt to 
l^EiklCISD 


by authority of 





GERMAN MILITARY GOVERNMENT OV^R EUROPE 
1939-1943 

Methods and Organization of Nazi Controls 


. FRANCE 


Jr 

J£A/ 




31 March 1944 


Copy No._ 

./ 

Vvhen t,hio ot.udy outlives its 

usefulness to you, please return to. RESTRICTED 

Office of Strategic Services 
Director, Research and Analysis Branch 
25th and E Streets, N. W., 

Washington, D. C. 

(3-034) 













This document contains information affect¬ 
ing the national defense of the United States 
within the meaning of the Espionage Act, 50 
U.S.C., 31 and 32 as amended. Its transmis¬ 
sion or the revelation of its contents in any 
manner to an unauthorized person is pro¬ 
hibited by law. 







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TABLE OF CONTENTS 

Page 

I. The Period of Operations... 1 

A. Earliest Measures. # . 1 

B. Economic Measures.<. 2 

C. Administration of Paris... 3 

II. The General Organization of Military Government. 5 

A. Introduction.... 5 

B. Paris Zone...,. 6 

1. General Organization.. 6 

2. Functional Controls. 10 

3. Special Zones. 14 

4. Judicial Affairs. 15 

C . Vichy Zone ... .... 17 

1. Armistice Commission. 17 

2. Legislative and Executive Powers.. 18 

3. Special Zones. 19 

III. German Police Activity.. 19 

A. Organization of French Police under the 

Third Republic..... 19 

B. Organization of French Police under Vichy.... 20 

C. C-erman Police Organization in France..... 21 

D. Influence of German Police on French Police.-. 22 

IV. Economic and Financial Controls. 25 

A. Control and Exploitation of Existing Stocks.. 25 

1 . Le hrwirts ch afts-und RUstungsam t. 25 

2 • Reichskf editkassen .. 26 

3. Armistice Commission.. . 27 

4. Enemy and Jewish Property. .. 28 

5. Control of Franco-German Economic 

Collaboration. .. 29 

B. Controls over Industrial and Agricultural 

Production... 30 

1. French Controls before German Invasion.... 30 

2. Industry. 31 

a. The Law of 16 August 1940... 31 

b. The Law of 10 September 1940. 34 

3. Agriculture. .. 37 

a. General Organization. 37 

b. Agencies to Improve French Agriculture. 39 

4. German Use of French Machinery of Control. 40 

5. German Organizations in France Exercising 

Economic Controls.... . 41 

6 . Price Control...43 

7. German Penetration into French Economic 

Life. 43 

a. Acquisition of Interests by the Germans. 45 

b. German Supplies of Certain Raw Materials 46 

c. Liquidation of French Investments Abroad 47 


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Rage 

C. Controls over the Use of Manpower.. 48 

1. Labor for Production in France. 48 

a. Labor Organization under the Third 

Republic. 48 

b. Labor Organization under Vichy. 49 

c. Vichy Labor Charter. 49 

2. Labor for German Auxiliary Army Groups 

in France... 52 

a. O rganisation Todt . 52 

b. Technische Nothilfe. 54 

c. NSKK. ..V. 54 

3. Labor for Production in Germany. 54 

a. Stages of Recruitment.. 54 

i. Initial Stages. 54 

ii. Concentration of Industry and 

Commerce. 55 

iii. The Releve ..„. 56 

iv. Compuls”ory Deportation. 56 

v. Conscription of Special Categories. 59 

(1) Doctors. 59 

(2) Eailwaymen.. .. 60 

(3) Postal and Telegraph Workers... 60 

(4) Miners... 60 

b. Machinery of Control. 60 

c . Results. .. 6l 

D. Controls over Financial Activity and 

Foreign Trade.. 62 

1. The Reichskreditkasse ..... 62 

2. Banking Controls.... 62 

3. Investment Controls.. 63 

4. Controls over Foreign Trade. 66 

5 . Taxation. .. 68 

6. Occupation Costs.... . 68 

E. Controls over Transportation and 

Communicat ion.... 71 

1. General... 71 

2. ^Railroad Transport... 71 

3. Motor Transport. 72 

4. Inland Waterways .. 73 

5. Commercial Avidtion . 74 

6. Maritime Shipping. 74 

V. Anti-Jewish Legislation..... 76 

A. Anti-Jewish Measures in General. 76 

B. German Anti-Iewish Legislation in Occupied 

France and Alsace-Lorraine...... 76 

C. French Anti-Jewish Legislation....... 80 

D. Financial Measures against lews. 83 

1. Occupied Zone.... 83 

2. Unoccupied Zone... 84 


Appendix A. German Offices and Personnel. . 87 

Appendix B, German Controls over France.. 92 

iii 


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GERMA N MILITARY GOVERNMENT OVER EUROPE 

I. THE PERIOD OF OPERATIONS 
A. Earliest Measures 

The period of operational activities in France was 
very.short, beginning on 12 May and coming- to an end as a 
result of the Armistice of 25 Tune, 

As the Germans advanced through France, their first 
administrative act in any locality was the posting of a 
notice^ - indicating that the German military commanders would 
assumd all powers necessary to assure security of the army 
and to maintain order e f Local officials were to continue 
to perform their duties upon condition that they maintain 
a loyal attitude toward the German Army. Each person to 
whom the German military authorities gave an order was 
to comply with it. This notice was signed by the Commander 
in Chief of the German Army, who thereby* conferred the above 
powers on subordinate military commanders. 

A number of measures which came into immediate effect 
in France were already prepared before the German armies 
set foot -on French'soil. One of these provided for the 
application of German 'lav/ by German military tribunals or 
special tribunals.2 Another gave the force of law to all 
decrees and regulations issued during the occupation by 
competent military authorities. The laws of the occupied 
country were to remain in force only insofar as they were 
compatible with such decrees and regulations.3 These 
measures clearly form part of a general pattern for oc¬ 
cupation, probably used in all countries where outright 
extermination was not intended. 

1. Verordnungsblatt fttr das besetzte Gebiet der franzosischen 

Departements Seine, Seine-et-Ojse und Seine-et-Marne, 

21 June 1940 (later changed to Verordnungsblatt' fiir die * 

besetzten franzosischen Gebiete ; both are referred to 

hereafter as V0B1.) 

2. Ibid. 

3. Tbid . 


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~ §0 

Another important part of the machinery of occu^;^Mn 

I' ;fiB - 

was also prepared in advance, namely, the establishire 
Reichskreditkasse n. The powers conferred on the Reichskredit - 
kassen by the Finance Minister and the Economics Minister 
of the Reich include regulation of the flow of currency, of 
payments, and of credit in the occupied country, and engaging 
in various financial operations in order to carry out the 
decisions of the central administration of the Reichskredit - 
kassen. The Commander in Chief in France ordered the 
establishment of the Reichskreditkasse for France to be 
effective from the moment of occupation.! The order was 
published before the conclusion of the Armistice, and 
represents the first authorization given to Germans other 
than military personnel to participate in the administration 
of France„ The Reichsmark had already been made legal 
tender and the exchange rate set by the Commander in Chief. 

An ordinance of 18 May 1940 provided for the exercise 
of quasi-judicial functions by local commandants in that 
they might punish persons not subject to the military penal 
code. 1 2 3 

B. Econom ic Me asures 

A series of ordinances and decrees concerning economic 
matters was issued toward the end of May 1940. By order of 
the Commander in Chief, Army authorities were empowered to 
insure the operation of businesses whose usual owners or 
managers had fled by appointing temporary administrators .3 
Another ordinance, dated 20 May, which was also applied in 
the Netherlands, Belgium, and Luxembourg listed commodities 

1. VOBI, 21 June 1940. 

2. Ibid. 

3. Ibid , 

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- 3 - 


which were subject to immediate requisition. Anyone possessing 
such commodities was required to make a monthly declaration 
giving the quantity and location of such goods in his pos- 
session. Ownership of goods might not be transferred 
without the consent of the military authorities,*^* Military 
authorities also had power to make detailed regulations to 
carry out the provisions of an ordinance of the Commander 
in Chief controlling imports and exports of all the western 
occupied countries,, 2 The Commander in Chief decreed on-23 
May 1940 that customs duties, taxes, and imposts should 
continue to be collected according to laws in force in the 
country before 10 May unless military authorities ruled 
otherwise; military authorities were also empowered to 
impose other duties payable in currency,^ The supervision 
of industrial, agricultural, and forest production was 
also put in the hands of German military authorities.^ 

It is clear that in this initial period ail orders 
j proceeded from the military branch, most being.signed by 
! the Commander in Chief, Economic and financial controls 
( came into effect upon the orders of the military and were 
' for the time being exercised by personnel attached to the 
! military. Although source material for France gives no 

direct evidence of such a policy, it is. probable that 

j 

such personnel was largely shifted over to the army civilian 
administration when that was set up. 

Co Administration of Pa ris 

' 

A kind of preliminary to the civilian administration 
is found in the administration of the Paris region under the 

— 

1. Ibid . 

2. Ibid. 

3. Ibid . , 

4- Ibid, 


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4 r 


Militarbefehlshaber Paris , who signed a number of decrees 
and ordinances toward the- end of June 1940» This administration 
was a temporary one,, and no-more is heard of the office 
after the establishment of'the army civilian administration. 

The -M ilitarbefehlshaber P aris ordered the blackout of the 
city,-*- issued orders against the hoarding of food supplies,2 
and decreed the freezing of prices and wages.3 A detailed 
proclamation of 20 June summed up various orders already 
given,4 It defined the offenses which mere to be tried in 
German military courts: assistance to non-German military 
personnel, aid to civilians fleeing occupied territory, 
transmission of information abroad to enemies of Germany, 
relations with war prisoners, offenses against the German 
Army or its command, gatherings in streets or distribution 
of tracts or organizing meetings without permission in 
advance from the German commandant, cessation of work .or 
incitement thereto. Local authorities and services were 
ordered to continue functioning and their heads made responsible 
to the German authorities for the performance of their duties; 
this provision ms supplemented by a more detailed decree of 
26 June 1940.5 Another duty of the Militarbef e hlshaber was 

to proceed with restitution of German property seized by the 

%' i 

French as a war measure. French authorities holding such 

property were ordered to declare it to him and German claims 

for restitution were to be submitted to him.^ 

Shortly after the Armistice, on 8 July 1940 , the 

Army was able to turn over the problems of government to 

a special military administration, utilizing many civilian 

% 

specialists. 

lT V0B1., 21 June 1940. 

2. £bid 0 , 20 June 1940. 

3. Ibido 
4* Ibid. 

5° Ibiff . 30 June 1940 
6. Ibid. 21 June 1940 


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Ili T HE 'GENERAL ORGANIZATION OF MILITARY GOVERNMENT 
A. Introduction 

German administration in Erance is conducted in two 
zones, distinct as to the theoretical degree of German control 
and as to the means through which control is exercised. The 
distinction tends to become less sharp as the occupation 
government remains longer in effect, but is preserved at 
least in form. 

The relation between France and Germany is nominally 
that of two independent states. German diplomatic representa¬ 
tion in France continues. By the terms of the Armistice, 

France agreed to the occupation of part of its territory 
(in which part the occupation authorities should have those 
governmental powers necessary to the occupation) -and agreed 
to the exercise of certain special controls in the unoccupied 

i 

portion by authorities deriving their powers -from the 
Armistice Commission which was set .up to supervise the 
execution of the Armistice. The French Government has some 
degree of authority throughout the whole of the national 
territory except Alsace and Lorraine, which are in the 
process of annexation to the Reich. In the part of the 
territory (now militarily occupied), which is not 
under the administrative contiol of the government of 
occupation (hereafter called the Vichy Zone in contradistinction 
to the Paris Zone), the Vichy Government has full authority, 
subject to the international controls of the Armistice 
Commission. It also has authority, .to legislate for the 
occupied Paris Zone, subject to'prior approval of its 
legislation by German authorities. 

For the purposes of German civil administration, the 


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Paris- Zone does not. include the two northern departments of 
Nord and Pas-de-Calais. These are attached to the German 
administration for Belgium and Northern France. Not all 
Vichy legislation which is approved for the Paris Zone is 
allowed to apply in these two departments. 

The area of German military command into which France 
falls is not coterminous with the areas of military administra¬ 
tion. 

B. Paris Zone 

1, General Organization . The Armistice of 25 Tune 1940 
may be taken as the constitutional basis for German authority 
in France. Its terms are, however, so general that their 
interpretation must be inferred from the acts of the German 
authorities. The relevant provision in Article III states 
only that Germany shall exercise all the rights of an 
occupying power, and that the French Government, through 
its officials and agents, shall support and carry out the 
regulations of the German authorities. Germany exercises 
a variety of administrative controls and, on the military 
side, has the authority necessary to the maintenance of its 
troops on French territory. The military administration 
serves not only to supervise the French but also to supply ' 
and maintain the Western A r my group in France; therefore 
there is the closest liaison between the field Army and the 
'military administration on all levels. 

The chief of the military administration in France is 
the Military Governor ( Militarbefehlshaber ), an office at 
present held by General von Stulpnagel. He has administrative 
authority over the military subdivisions in France (for 
operational purposes they are under the higher authority of 
the Field Army itself) and heads the administration of civil 
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affairs. Military affairs are directed by a.Military Staff 
( Kommandostab ), and matters of civil administration by an 
Administrative Staff ( Verwaltungsstab ). The Administrative 
Staff has a number of functional subdivisions including 
one for economic* matters and one for propaganda. For 
purposes of military administration the Military Staff works 
through various territorial subdivisions of the Paris Zone, 

The largest of these is the District ( Militarverwaltungsbezirk ) 
of which there are four: 





Headquarters 

Approximate area 

Military 

District 

A 

Paris 

Territory north and 
east of line Caen- 
Orleans-Troyes-Nancy 

Military District 

B 

Angers 

West of above line 
and north of Loire 
River 

Military 

District 

C 

Dijon 

Eastern France south 
of line Caen-Orle'ans- 
Troyes-Nancy 

Military 

District 

D 

Bordeaux 

South of Loire 


Greater Paris forms a fifth District on the same administrative 
level. These Districts are further subdivided into 
Oberfeldkommandanturen with divisional status, Feldkom - 

mandanturen with regimental status, and Kreis- or 

- 

Ortskommandanturen with battalion status. Originally the 

area of an O bei feldkommandantur corresponded to several 

departments, a Feldkommandantur to a department, a 

' 

Kreiskommandantur to an arrondissement, and an Ortskom- 

m andantur to a single municipality. Often the offices 

■ 

were housed in the same building with those of the French 
- 1 

official of similar territorial jurisdiction. A reliable 
report of the summer of 1942 indicated that, because of the 
shortage of manpower occasioned by the campaign in Russia, 


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- 8 - 

the German,offices Were being sphead somewhat more thinly, 
the Kreiskommandantur now corresponding to a department, 
and the Feldkommandantur to two or more departments, with 
a consequent reduction in the number of Oberfeldkommandanturen . 

An order issued by F.K. 750 at Vannes indicates economy in 

; • - 

Kreiskommandanturen , although it does not otherwise bear out 
•in' detail the above generalization. 

The Military Governor exercises German legislative 
power in France, Decrees and laws are signed by him and are 
executed by local German officials, acting either directly 
or through'the local French officials. The Fe1dkommandanten 
often make detailed regulations implementing the decrees 
of the Military Governor. German legislation is in practice 
confined to a fairly narrow range of subjects; it has been 
found more satisfactory to inspire French authorities to 
enact desired legislation in such fields as economic and 
social legislation, control of various types of associations, 
control of production, etc. The subjects dealt with by 

1 

German legislation are usually such as directly affect 
the security of the Army — definition of the competence 
of military tribunals,' provision for the prevention and 
punishment of . sabotage, control of means of propaganda, 
control of all-communications with the Vichy,Zone and with 
foreign countries, enactment of regulations for civilian 
defense', control of stocks and stabilization of prices 
(this has been turned over more and more to French authorities) , 
etc. One notable field in which German legislation was the . 
rule was anti-Jewish legislation. The Military Governor 
enacted laws similar to those of Germany for the Paris Zone; 
the Vichy Government enacted anti-Jewish laws, but they were 


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- 9 r 

not as severe as those of the Paris Zone. The Vichy 
Government may make laws which apply in the Paris Zone 
as well as in the Vichy Zone, provided the laws have the 
prior approval of German authorities. Furthermore, 
established French laws continue to apply so long as they 
are not incompatible with German purposes. 1 2 3 

Execution of German decrees is carried out by the 
Military Staff, the Administrative Staff, and French officials. 
The chief of the Administrative Staff is Dr. Schmidt, who, 
in a press interview, described his staff in the following 

p 

terms. Its personnel consists of about a thousand individuals 
who constitute an elite of administrative officials with 
special qualifications for their work in France. Indeed, 
in view of the relative smallness of their numbers, they 
probably depend on local units of the Military Staff to deal 
for them with local French officials. Both military and 
administrative staffs are attached to the Oberfeldkom - 
mandanturen and offices for Military Districts.3 French 
authorities are specifically charged by the terms of the 
Armistice with preserving local government and with executing 
regulations of the occupation authorities when called upon 
to do so. The Vichy Government made considerable changes 
in personnel throughout the local services of national 
agencies and in local government. Y.herever new appoint¬ 
ments were made for the Paris Zone the approval of the 
German authorities had to be obtained. Thus there was built 
up a personnel composed of Frenchmen who could, for all 
practical purposes, be relied upon faithfully to carry out 

1, V0B1., 20 Tune 1940 

2, Berliner Bfirsenzeitung , 2 November 1940. 

3, lohanny, Carl. "Die Milit&rverwaitung in Frankreich 'ilnd 
Belgien." Deutsche Verwaltung , 25 November 1940. 


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10 - 


German orders. The fact that often German offices were located 
in the same buildings as those of the French officials 
provided an initial check on the activity of the latter. 

2. Functional Controls . The manner in which certain 
problems are handled will now be.described in order to shed 
light on the problem of functional controls in general. 

The control of communications is one of vital concern to 
the maintenance and security of German military forces. 

Radio stations were seized outright, and all transmitting 
apparatus was ordered to be delivered immediately to the 
German military authorities.' 3 * Another very early order 
limited postal service to the Paris Zone, forbade the use 
of telegraph and teletype, and restricted telephone service 
to local networks exceot for assigning the French Govern- 

' ■ II 

ment certain long-distance lines and certain linos between 
the two zones. Later these regulations were somewhat 
relaxed; postal service with certain foreign countries 
was resumed and, finally, service across the demarc-tion 
line . * 2 Letters from the Paris Zone to the Vichy Zone 
go through the German censorship office, then to a German , 
military post office {Deutsche Feldpost) which delivers 11 

them, to French exchange post offices on the demarcation line. 

The observance of the prohibitions is assured through French ) j 
post offices. Some of the many German women auxiliaries 
who came to France on the heels of the German army first ill 

operated, and later supervised, the operation by French 
personnel of telephone and telegraph services; thus German 


authorities were able to keep a constant check on suspect 
lines. Long-distance telephone calls and the sending of 

1. V OBI .; 30 June-1940, 

2 * Ibid «3 14 November 1940; 31 October 1941 ; 



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11- 


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telegrams was finally permitted, subject to authorization 
from the Feldkommandantur . Frenchmen seeking such authorization 
are required to apply to the French prefect, who in turn 
passes the request to the Feldkommandantur and delivers 
the authorization if it is granted. Recently it was reported 
that increased sabotage had necessitated placing telephone 
and telegraph lines in the Atlantic coast region under 
direct German control. 1 Control over carrier pigeons is 
carried out by the French mayor, who is ordered to receive 
declarations as to their ownership. The mayor is then 
required to submit quarterly reports to the Feldkommandant 
with respect to carrier pigeons. 2 3 Permits to use motor 
vehicles apparently are issued by the prefect, but only with 
the consent of the Feldkomnandant .3 yiohy finally enacted 
a code for motor traffic modeled on German rules, and there¬ 
after enforcement of French legislation by French authorities 
was sufficient to satisfy German requirements. German 
control at the demarcation line is, however, severe and 
undisguised. Rules for crossing are set forth by the * 

Military Governor^-and applied with all the force at Germany’s 
command. 

An important instrument of German occupation is the 
control of the various channels of propaganda. To exercise 
that control directly or through French authorities is the 
business of the Propaganda Section of the Administrative 
Staff, at present under Major Schmidke. All publications 
in the Paris Zone were required t6 go to German authorities 
for permission to continue or resume after the occupation; 

1. FCG ticker, 14 October 1943. 

2. Verordnungsblatt , 17 October 1940. 

3. Ibid .; 27 August 1940. 

V. Ibid ., 15 May 1941. 


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in many cases a German political director was installed, in 
the editorial offices of the publication to supervise its 
work. Individual publishing firms received a list of banned 
books which were to be -withdrawn-■•from, sale and destroyed. 

The impression given by German authorities was that the 
imposition of this list resulted from an agreement with the 
French association of publishers. This association now 
performs a preliminary censorship of new publications which 
is subsequently reviewed by the Propaganda Section.^" An 
instance of direct German action is an order by the Military 
Governor forbidding the use of certain history texts in 
schools, 1 2 3 4 5 6 The enforcement of such an order would naturally 
devolve primarily upon the French prefects, who exercise 
local control over teaching personnel,, as well as on the 
French Ministry of Education, whose control is national 
in scope. In the matter of cinemas, authorization of the 
head of the Administrative Staff is necessary to run a 
motion picture house. Request for such authorization is, 
however, addressed to the French association of directors 
of motion picture houses.^ The head of the Administrative 
Staff also passes on all films before they can be shorn.4 
The censorship unit of the Propaganda Section is called the 
Filmprufstelle .^ The Military Governor, through the French 
association of producers, licenses persons permitted to engage 
in any part of cinema production,^ 

1. Kernan, Thoma^ France on Berlin Time. 

2. V0B1 ., 19 September 1940. 

3. Ibid ., 19 September 1940 . 

4. Ibid., 19 September 1940 

5. Ibid ., 25 May 1941. 

6. Ibid . , 7 December- 1940. 

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A number of miscellaneous functions are carried out 
partly by German agents, partly by French. Measures to 
combat epizootic disease and plant pests are ordered by the 
Military Governor or the head of the Administrative Staff. 1 
Outdoor photography is permitted only v/ith specific permission 
of the Feldkommandan t, and all photographs so taken must be 
submitted to the nearest local German command, which may 
confiscate them. 2 Requisition of real property fox German 
use is carried out through a commission located at the 
prefecture. The actual order for expropriation is issued 
by the mayor of the commune in which the property is located. 
Owners are compensated from funds in the hands of the 
commission. French authorities cooperate with German in 
receiving the arms which the population is.required to 
surrender. Such arms are turned in to the Feldkommandantur , 
Kreiskommandantur , local city hall, or local French police 
or gendarmerie. 1 

German local offices exercise control over German 
nationals in France. All civilians are required to register 
with the Kreiskommandantur and to report any change of address.4 
Claims for indemnification for war damage to German nationals 
or German property are handled by the Feldkommandant with 
jurisdiction over the place where the damage v/as caused, 
subject to appeal to the Military Governor. In investigating 
the claim, the Feldkommandant must consult the Landesgrupp'e 
Frankreich of the' organization of the. Nazi Party abroad, 

if the claimant’s residence was in France, or the 

l7 Ibid ., 29""August 1940; 7 duly 1941. 

2. Ibid., 3 October 1940. 

3 o Verordnungsblatt , 18 March 1942* 

4v Ibid ., 25 February 1942. 


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- 14 


Beratungsstelle fffr Velksdeutsche in Paris if his residence 
was in Germany.-** 

3. Special Zones . German authorities have established 
a number of special zones in which they take special measures 
and insist upon somewhat tighter controls than in the rest 
of the occupied territory. One of these is the so-called 
Forbidden Zone, including the northern and eastern parts of 
France; the line starts from the Atlantic coast at the mouth 
of the Somme River, proceeds eastward through Amiens, passes 
somewhat south of Laon, apparently follows the course of the 
Aisne, passes through Chaumont and east of Dijon, finally 
ending near the southern end of Lake Geneva. (This description 
of the course of the line is only approximate; in any case 
the line was shifted locally from time to time.) A coastal 
zone runs along the Atlantic coast from the Somme to the 
Spanish frontier, at a distance of' some thirty kilometers 
from the coast but so drawn as to cut deeply inland back 
of the larger peninsulas. Between Cherbourg and the Belgian 
frontier the beaches themselves form another special area. 

The extension of the coastal zone north of the Somme through 
the Forbidden Zone is called the Maritime Zone. Regulations 
applying in these different zones are not always known in 
detail. Restrictions on entry into and travel within the 
zones are common to all of them. 1 2 3 In the Coastal Zone, all 
persons whose principal residence was not there were- forced 
to leave, by order of German military authorities. Residents 
may obtain permits for entry into the zone by applying to 
Kreisk ommandant tt 3 Change of residence even within the 


1. Lbid., 1 April 1941. 

2. gulletin of International News, XVII, 1679 (31 December 194C 

3. Order of Military Governor” 6 "October 1941. 


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' - 15 ' - 


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zone is forbidden. Later regulations provide for presenta¬ 
tion of the request for a permit to the mayor for transmission 
to the Feld- or Kreiskommandantur ; only in the most urgent 
cases may German authorities be approached directly. 

Recently there has been still further limitation, at certain 
strategic points with regard to persons allowed to remain. 
Certain cities with important military or naval installations 
have been ordered evacuated by all except essential civilians, 
while possible sites of invasion have in some cases been 
ordered cleared of all except Germans, 

The northern Forbidden Zone presents the special 
problem of resettlement in an acute form. A large part of 
its population fled before the oncoming Germans. Although 
the Armistice provided in general terms for the return of 
French refugees through the aid of the French Government, 
the Armistice Commission ruled that they might not return 
immediately to certain zones. The restriction was not long 
retained in the Coastal Zone. It persisted, however, in the 
Forbidden Zone, where it was apparently part of a clear 
policy of replacing French population by Germans. No prisoners 
of war from this area were returned, and heavy levies were 
made for labor in Germany. 1 2 3 

4. Judicial Affairs . Legal matters in France remain 
largely in the hands of the French courts. German decrees 
and regulations must, however, be enforced as the law of 
the land.^ French prosecutors must turn over to German 
military tribunals all records of cases involving the following 

1. lEL Moniteur Officie l du Commerce et de 1 T Industrie , 

11 February 1943, p. 172. 

2. Pour la Victoire, 17 April 1943* 

3. VO 61., 21 June 1940. 

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■ - 16- 


matters : offenses against the German Army or the personnel 
'attached to it, offenses committed in buildings or other 
space tuined over to the German Army., and offenses against 
German regulations for the security of the Army or the 
accomplishment of the purposes of the occupation.^ The 
German tribunal will examine the record and, if it is interested 
conduct the trial; otherwise the papers will be returned to 
French authorities to be handled under French procedure. In 
addition to their usual competence, German military tribunals 
are empowered to try cases of German or Italian nationals 
accused of minor crimes ( delits , in French law), even if 
these crimes were committed before the occupation. German 
military tribunals apply the German military penal code. A 
proclamation of 20 June 1940 lists some of the offenses 
which would make the perpetrator subject to trial under 
military law: assistance to non-German military personnel, 
aid to civilians fleeing occupied territory, transmission 
of information abroad to enemies of Germany, relations with 
prisoners, any offense against the German Army or its command, 
gatherings in streets, strikes or incitement thereto.2 

Various non-judicial German authorities have quasi¬ 
judicial powers. Penalties may be inflicted by these persons 
(imprisonment up to six weeks and/or fine up to 30,000 
Reichsmarks). Such punishment does not preclude civil trial 
and punishment for the same offense.3 Authorities empowered 
to inflict such penalties are the Kreiskommandanten 
( Feldkommandant where there is no competent Kreiskommandant ), 
the Kommandant of Greater Paris, and officials of the 
Sicherheitspolizei 

1» Ibid .; 23 September 1940. 

2* I bid .; 20 June 1940. 

3* dbid .; 21 June 1940; 23 September 1940; 10 August 1942. 

4.» .. Ibid , , lAugust 1942. 

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French authorities are Required, to take part in German 
judicial administration by executing sentences of imprison¬ 
ment imposed by German tribunals Wien the German authorities 
so request. Another type of case in which French authoritiesv 
may be required to help Germans is the recovery by force 
of fines imposed as disciplinary measures by Kreiskommandanten 
(or other persons authorized to take such action). The 
Kreiskommandant may order the French percepteur to effect 
recovery. If there is a plea for suspension of the sentence, 
the Kreiskommandant may require the percepteur to make 
investigations, examine witnesses, and submit to the 
Kreiskommandant an advisory report written in German.' 1 ' 

C. Vichy Zone 

1. - Armistice Commission . As pointed out above, while 
the Vichy Zone remained unoccupied German control functioned 
through the Armistice Commission, which was an institution 
on an international plane. Its direct action was confined 
mostly to examination of incoming ships and supervision of 
airfields. Special commissions were established at all the 
principal airfields of the Vichy Zone for the crntrol of 
personnel and material. The staff at Lyon consisted of 
138 officers and non-commissioned officers and about ten 
inspectors. 2 3 A report from Switzerland of December 1942 
indicates that the Armistice Commission at Wiesbaden was 
dissolved because the occupation of the Vichy Zone made it. 
superfluous. French officials henceforth are to 'negotiate 
with von Rundstedt and von Nidda.^ 

1. Ibid., 2 September 1941. 

2. Combat , No. 2, December 1941. 

3. Washington Star , 14 December 1942. 


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18 - 

2. Legislative and Executive. Powers , When the Germans 
-occupied, the Vichy. Zone in November 1942, their occupation 
seems to have been given purely an operational significance. 
In ; form, no change, was made in the powers of the Vichy -. 
Government, and the.Germans did not assume in the Vichy 
Zone all the powers that they have in the Paris Zone. 
Actually,.the Germans moved in and established local controls 
much like those in the Paris Zone. The manner of legislation 
continues as before, with the Vichy Government making laws . 
for the.Vichy Zone and Paris Zone with German approval, and 
the Military Governor issuing decrees for the Paris Zone 
only.’ However, in January 1943 German liaison headquarters 
were to be established at every prefecture, with principal 
headquarters at•every regional prefecture. These groups 
were•expected to deal with the. prefect who would pass their 
orders on to such Drench officials as. the regional military 
commissioners (c omrnissaires regionaux militaires ) for 
billeting; labor inspectors ( inspecteurs de travail ) for 
labor recruits; inspectors of industrial production 
( inspecteurs de production industrielle ) for merchandise 
vouchers,; road and bridge engineers ( ingenieurs de ports et 
chaussees ) for transport; and treasury, agents.(t resoriers - 
• payeurs generaux ) for financial matters. Such an office is 
known as a Verbindungsstab and corresponds roughly to the 
Eeldkommandanturen of the Paris Zone. That at Lons-le- 
Saulpier (Jura) had a staff of about twenty-five persons. 

It also dealt with incidents between the German troops and 
the population. A German office was said to be located in 
every town of ten thousand-or more; smaller towns were not. 
the seat of permanent military headquarters, although 


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- 19 - 


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temporary headquarters might be established there from time 
to time. 1 In Toulouse German administrators were attached 
to the French offices for highway police, state police, and 
the protection of state property for war industries,, 2 
German police personnel were to be found throughout the 
Vichy Zone (police activities will be described In detail 
below). 

3. Special Zones . In the’Vichy Zone as in the Paris 
Zone, certain areas were set aside which were especially 
important from a strategic point of view* One stretches 
the length of the Spanish frontier and others cover almost 
the whole length of the Mediterranean coast. The usual 
restrictions as to travel, entry, and residence apply here 
as in the special areas of the Paris Zone. Evacuations 
have been carried -out at strategic points, although to a 
somewhat less extent than in the Paris Zone, A rumor that 
the entire population of able-bodied men was to be evacuated 
from a wide strip along the Mediterranean coast is un¬ 
substantiated , 

III. GERM AN POLI CE AC TIVITY 

A. Organization of French Police u n der t h e Third Republic 

Before the German invasion the normal pattern of 
French police organization placed the police of all except 
the largest municipalities under the control of the mayor, as 
chief police officer. In addition to such police, a national 
police organization provided forces for the largest cities 

1. Interview report, London, 12 May 1943* 

2. Fighting French Commissariat of Interior, London. 


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and performed investigative, detective, and counter-espionage 
services for the nation as a whole* Military police 
( gend arme rile ) were held in reserve to be called in as 
shock-troops by civil authorities in case, of need. Control 
at the top was vested in the Ministry of Justice for judicial 
police functions (principally the pursuit a’nd bringing to 
justice of criminals), the Ministry of the Interior for 
administrative police functions (general surveillance 
for the purpose of preventing criminal activity), and 
the Ministries of bar and Navy insofar as these controlled 
the various units of gendarm erie 0 
B„ Organization of Fren ch Polic e un d er Vichy 

Under Vichy, the police of all -towns of over ten 
thousand population was placed under state rather than 
municipal control and made dependent upon the Minister 
of the Interior, Pierre Laval, whose cooperation with 
German authorities is notorious.. In towns down to two 
thousand population (and in exceptional cases, in smaller 
ones) the elected mayors and municipal councils were set 
aside and replaced by men appointed by Laval. Thus the local 
police services came to be dependent on the central power 
through these municipal authorities. Collaborationist 
attitudes on the part of individual police personnel are 
by no means assured, however, except in the case of 
Laval’s Drench Militia (formerly the Service d’ Ordre 
Legionnaire ), a body variously estimated as consisting 
of from ten to thirty thousand men inspired by enthusiasm 
for the New European Order. 

Until May 1942, French police matters were handled 
solely by the French Government at Vichy. German police 

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were found In France, Indeed, but usually pursued their own 
independent investigations and carried out their own operations 
sometimes with the help of French police but without inter¬ 
fering with French police operations. However, the general 
lack of collaboration on-the part of French police finally 
necessitated the appointment of a chief police officer for 
France, the Hohere S3 und Polizeifuhrer , with offices in Paris. 
He is assisted by a Governor of Security Police (Bef ehlshaber 
der Sipo und des SD ) . Probably offices in Vichy were 
established at the same time, but until the occupation of 
the Vichy Zone German police activities there were kept 
very much under cover. 

C• German Pol i ce O r ganiz e tion in France 

The two most prominent types of German police in 
France are the Gestapo and the Feldgendarmerie , There is 
no direct evidence of the presence of any units of Geheime . 
Feldpoliz ei Or of Schupo Barrack Battalions. The Gestapo 
maintains representatives in many of the French ministries 
and their subdivisions. It has headquarters in Paris and a 
sub-office in Vichy.-*- The chief of the Gestapo is responsible 
to Oberg, of the SS, who is in turn responsible to Himmler. 
Oberg is probably on the same level as the head in France 
of the WiRu (see under "Economic Controls") or the chief 
of the Administrative Staff from the point of view of 
subordination to the Military Governor. The Gestapo uses 
French state police units to conduct its inquiries' and may 
also have assumed some direction over the French police 
charged with the surveillance of subversive movements. 

A report of a refugee from France states that two members 

1. France , 5 September 1942. 

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of the French political police in Lyon (members of the State 
police) are in the pay of the Gestapo, Some of the reported 
activities of the Gestapo in France are the tracking down of 


French patriots,^ and the control of passports and foreign 


currency at the frontiers. The SD headquarters in Rennes 

announced that, as,of the beginning of 1943, it would have - 

sole responsibility for surveillance over, and imposition of 

restrictions on, foreigners living in French occupied 

territory 1 2 (it is not clear whether this-means the old Paris 

Zone, or the whole of France.) Gestapo and SI) officials 

are considered civil police; they wear either plain clothes 

or the usual SS uniform. 

In addition to Gestapo and 3D, units of the 

Feldgendarmeri e, a military police, function in France. 

They are stationed at various Komma rd anti ren, where they 

maintain discipline among the civilian population if French 

police break down* They often provide patrols and examine 

papers in prohibited areas, and sometimes conduct searches 

and make arrests. The Feldgendarmerie often function with 

the assistance of French g endarmerie , to whom they give 

ordeis through the prefects and mayors in ordinary cases, 

although they give their orders directly in more urgent cas£s. 

The Feldg enda r merie in Brittany has been described as having 

its central office at the Feldkomman dant ur at Quiraper and 

making periodic visits to other cities. Its functions are 

the patrol of roads and the interrogation and arrest of 

hostages. In the latter activity the French police collaborate 

•• - ' ' 

D. In fluence of German P ollo e on French Police 

Shortly after the German occupation of the Vichy Zone 

1. New York Heral d T ribun e, 22 July 1943. 

2, Ddpgche de Brest"et de "l*Quest , 15 January 1943. 



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- 23 - 


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the official press agency, OFI (German-controlled successor 
to Havas), declared that French police continued to operate 
with full independence and under the sole authority of the 
French GovernmentHowever, much other evidence gives the 
lie to this assertion* A member of the French administration 
now escaped from France described the situation in Marseille 
in the spring of 1943 as follows: about 1,500 German police 
were there, including Gestapo, S icherheitspoli zei, and 
Feldgendarmerie , Division of jurisdiction among them is 
confused, one group often launching on an investigation 
already being handled by another, Relations with French 
police are through the In t endant de P olice , an officer appointed 
by the Minister of the Interior to cooperate with the regional 
prefecto German police intervene in French police matters 
at will, and when they themselves fail to solve a case 
usually blame the French police. 2 The Gestapo in Toulon 
makes man;; arrests arising from difficulties between the 
French population and the Germans.^ The Gestapo arrived 
at Montpellier with the nominal purpose of searching for 
clandestine radio transmitters. Actually its purpose was to 
instruct and control French police. A large number of French- 
speaking German police were expected to appear as Vichy 
police inspectors for this purpose J' r , ■ 

Very prominent among the recent activities of the 
German police, probably particularly of the Gestapo, is the 
rounding-up of persons to send to work, in Germany* They 
carried on round-ups in the Vichy Zone before the occupation 
of that area. Such raids are usually accomplished by forces 

1* Petit Marseillai s, 14 November 1942« 

2. Report on interview, 12 May 3.943 (London). 

3. La Marseil l aise , 21 February 1943. 

4. Fighting French, London* Bureau Central de Renseignement 
et Action, 29 September 1942. 


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- 24 ~ 


composed partly of French police and partly of German, and 
are led by German police officials. 

In addition to the above types of police, which are 
the most common, a coastguard service, the Ma rine 
Kustenpo lizei, patrols the entire coastline of Occupied 
Europe, including France., Its duties, performed in conjunc¬ 
tion with the other security services, are those of harbor 
police and the assurance of port security. It wears the 
unif orm of the Wasse rs chu tzpoliz ei . which guards the water¬ 
ways and ports of the Reich, with a yellow armband added to. 

signify their attachment to the armed forces, A Hafen- 
kommandan t, reported to be stationed at St, Brieuc, is 
probably a member of this service. H afenuberwa chungs ste lle, 
under the German Navy, supervise crews and passengers on 
incoming ships.**- 

Another security branch, which is set up under the 
command for Western Europe and which undoubtedly operates 
in France was announced in March 1943 . It is under the 
jurisdiction of von Rundstedt, Commander in Chief of the 
German Armed Forces in Western Europe, and its head is 
Police General Oberg, head of the Gestapo in France, Special 
units located in all industrial centers make up this new 
department. Their function is to combat civilian uprisings 
which may take 'place in case of an Allied landing. 1 2 

1. V 0B1 ., 17 June 1942. 

2. FCC daily report, 24 March 1943 • 


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- 25 


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IV. ECCilOIlIC AND F MANCIAL CONTROLS 
A. C ontrol and Exploits ;-- Ion o f Exi sting Stocks 

1. W ehrwirtschafts-u^d Rtistn ngsamt . The German adminis¬ 
trators in France have placed emphasis on one phase or another 
of economic control, according to the principal purpose of the 
Germans at the time. The initial period, from the first 
occupation until after the Battle of Britain, was conceived 
as a short-term affair, in the full expectation that the battle 
would be a quick victory for Germany and that economic re¬ 
organization of France could then be accomplished at leisure. 

In this period the German object was to .drain France, of 
whatever stocks of finished products, food, or raw materials 
might be of immediate use to Germany. The time element was 
so conceived that the placing of orders for manufacture in 
France or the recruiting of French labor for manufacture in 
Germany was of secondary interest. The Wehrwirtschafts-und 
RUstungsa mt ( WiRu) , responsible to the Supreme Command and 
to.the Ministry of Armaments, was the instrument for'the 
initial looting. A Special War Economy and Armament Board 
had to be established in France. It'administers'not only 
•special purchasing offices and special guarantee offices,^ but 
also four /sic J Armaments Inspection Corps, each of which 
disposes r of its own field offices, economic troops, and salvage, 
squads. . These units.work for the military needs of Germany, 
whether these are direct needs, like economic' support of the 
German troops stationed in France, or indirect ones, like ship¬ 
ping to Germany the raw materials uncovered ( aufgespurt ) in the occupied 

T~. The main task of the purchasing offices is provislQuang .... 
the armed forces engaged in the campaign against Britain. 

The main duty of the special guarantee offices .is to . 
collect the arms and ammunitions in the possession, of. the • 
vanquished peoples. 

"restricted 



















RESTR ICTED - 26 - 

region ... This work of the WiRu units must be done repeatedly. 
Again and Again, secret Stockpiles are uncovered ...; else¬ 
where, finished goods wait for expert packing and shipping 
in order to eliminate bottlenecks in German production. Four 
salvage squads and three special divisions of the Todt 
Organization are at the disposal of the /German/.armaments 
inspectors in Paris for dismounting machinery . .X 1 

Another source of materials in France was exploited 
somewhat later. The Germans found that the French had not 
been suing scrap of various sorts to any great extent. The 
Service de la reouperation et de 1 T utilisation d es dech e ts 
et vieilles matures was set up under the supervision, of the 
economics section of the German Administrative Staff. The 

French prefects in each department were placed in charge of 

2 

collections, which began in 1941. 

2. Rei c hskr e d it kassen . The WiRtt units function best in the 
earliest stages of occupation, when they take over abandoned 
stockpiles or installations, protect them from further damage, 
and convert them where possible to German'use. However, 
in more settled circumstances outright confiscation,is un¬ 
desirable, inasmuch as German authorities wish to avoid arousing 
the resentment of the civilian 1 population. The Re ichs - 
kreditkassen , one for each occupied country, are the German 
answer to the problem. They are banks of issue attached to 

rz 

the.Army and directed from Berlin. Their principal function 

is to supply invading forces with currency for necessary 

purposes -- a special currency which has no value whatsoever 

outside the particular occupied country and which is 

lT Baumgarten~ T? Die Neue Vvaf.fe,October 1940 (cited in Foreign 
Policy Reports , 1-June 1942). 

2. Chemische Techn ik, Berlin, 17 October 1942 (Digest of 
European Newspaper s and Periodicals, 14 June 1943). 

3. Foreign Policy Report , 1 June 1942, p. $.8. 

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- 27 - 


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exchangeable with native currency at a rate fixed by the 
German authorities. 1 With this money the Germans purchase 
what suits their fancy — they can pay generous prices 
because Germany has no intention of redeeming the notes — 
and the sellers take this money to French banks, which are 
forced to exchange it for French francs at the official rate. 

The local banks pass the money on up until it reaches the central 
bank of issue, Vvhere it can only be piled up uselessly. Thus 
Germans "purchase" what they want at the expense of the 
French Government, while trie individual sellers are often well 
satisfied with their payment, 2 


To facilitate the above operations, it is important 
to the German authorities that they know where stocks of goods 
are to be found. Hence an ordinance of 20 May 1940, applying 
to the Netherlands, Belgium, Luxembourg, and France, rules that 
all merchandise listed in the annex to the ordinance must be 
considered requisitioned (except a "reasonable supply" found in 
private households), and ownership of it may not be transferred 
without the permission of the German authorities. Further¬ 
more, every possessor of such goods must furnish a monthly 

3 

inventory thereof to the • German authorities. This check on 
available goods is carried to the point of not permitting the 
German Army or its agents to purchase rationed food supplies 
without presenting food cards or requisition slips signed by 
commanding officers of the grade of Feldkommandant or higher. 4 

3. Armistice Comm iss ion. In the Vichy Zone the Armistice 
Commission, through its local commissions, controls the cargoes 
of incoming ships. When a ship comes to port no one may leave 


1 . 

Ibid., 

p . 69 . 

2. 

'Ibid. , 

p ,69. 

3. 

V0B1. , 

21 June 1940. 

4. 

Ibid. , 

20 April 1941. 


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- 28 - 


it and nothing may he taken off until the agents of the 
Armistice Commission have inspected the cargo to determine 
what part of it shall be shipped on to Germany. 

Usually 60* to 80 percent, and sometimes the whole cargo is 
taken. This happened to foodstuffs from North Africa which 
were brought to Marseille. 1 2 3 4 5 6 

Ene my and Jewish Property ,, It is not clear to what 
extent the Germans seized enemy property in France. Again, 
as in the case of goods liable ter requisition, such property 
had to be declared to a German office in Paris.^ After the 
first order extensions were made to include Russian property 

o 

(31 July 1941r and American property (22 December 1941)° 

The latter was to be declared to a special Office for 
the Declaration of American Property in Paris; its address 
is, howev.ee, the same as that of the Office for the Declaration 
of Enemy Property.^ All American interests were taken under 
German trusteeship. American plants are being operated to 
produce for Germany.^ 

Another source of loot for Germany was Jewish propertyi 
A fine was imposed on the Union des Israelites (a compulsory 
association established by a French law of 29 November 1941) 
by the German Military Governor. The proceeds of the levy 
were to be deposited at the Reichskreditkasse . French 
authorities were made responsible for the assessment and 
collection of this fine.^ (See below, V.). 

1. New York Times , 23 March 1942. 

2. V0B1•, 22 November 1940. 

3. Ibid ., 22 August 1941. 

4. Ibid ., 5 January 19 * 42 . 

5. New York Times , 14 February 1942, section.5. 

6. V0B1 ., 20 December 1941. 


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29 - 


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From the Bank of France the Germans seized gold 

deposits belonging to Belgium and Poland. Belgium thus 

lost }22& ,000,000 and Poland J 62 ,000.000 worth of gold , 1 

This gold had been received with the understanding that 

the Bank of France would, if possible, keep it from falling 

into German hands. This promise was not kept. In the case 

of the Belgian gold, it was shipped back into Occupied 

France after it had been sent to Dakar. 

5o Control of Fr a nco - G- email Economic C ol labor ati on . 

A .very important French agency has been set tip at German 

request to. deal with the broadest problems of Franco-German 

economic collaboration. It is the "De legatio n Gene rale' aux 

2 

Relations Econ omiqu es Fra nc o- all eiaar d es , 77 * at first headed 
by Jacques Barmaud. The Dele gatio n Ge'hefrale was organized 
within the Paris branch of the French Treasury to centralize 
and coordinate all negotiations of an economic character; 
it is in constant touch with the German Services of the Hotel 
Majestic, under Dr. Michel, and with the French economic 
experts attached to the Armistice Commissions. 

In certain French ministries there are also special 
offices in charge of Franco-German problems. For instance, 
at the French Treasury, Se cret ariat Gene ral des Aff aires 
Economiques , Direction des Finances Exterieures et des 
Changes , there was a "Franco-German Section 7 ’ under Jacques 
Berthoud. In the Ministry of Agriculture and Food Supply, 
as reorganized in 1942, there was also, within the Minister’s 
Cabinet, a "Special Section 77 in charge of negotiations with 
the occupying powers. In the Ministry of Industrial Product! 
there was, according to the decree of 30 April 1941, a 

1. Christian Science Monitor , 1 April 1943; New York Times , 

7 November 1942. 

2. Law of 23 February 1941. 

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- 30 - 


Service des Affaires Exterieures in charge of all questions 
pertaining to the application of the Armistice, to the rela¬ 
tions between France and the occupying powers, and eventually 
to the fulfillment of those conditions of the peace treaty 
which would refer to industrial production. 

Bo Contr ols over Industrial an d Ag ric ultural Pro duction 

After the intensive period of direct requisition of 
stocks for German use, German economic administration in France 
was concerned primarily with turning French capacity for- pro¬ 
duction, both industrial and agricultural, to German use. 

1. French Co ntrols before Ge rman Inv asio n. .Before the 
war, both industry and agriculture had remained essentially 
free of state controls. Heavy industry, in particular the 
manufacture of steel and aluminum and the mining of coal, were 
in many cases under extra-governmental associations which were 
of great influence but which were voluntary in form. In the 
agricultural field, too, powerful associations, like those 
of wheat growers of sugar-beet producers, represented the 
most important farmers and were active in promoting protec¬ 
tionist policies; these also, however, were voluntary in form. 

Many wartime agencies changed this outlook and paved 
the way to the new Vichy setup. 

To carry out its armament programs, the French Govern¬ 
ment had deemed it necessary to deal with a small number of 
industrial associations which would be responsible for their 
members T cooperation. Such problems as the supply of raw 
materials, the centralization of imports, the allocation of 
ordnance orders, and price control had led the government to 
form "licensed group of producers and traders” responsible 
for the procurement of a definite category of raw materials 

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under the supervision of the state. Such groups had already 
been forecast, in fact, by the law of 11 July 193& concerning 
the general organization of the' nation in wartime (Art. 49). 

Later on, a decree of 27 October 1939 provided for 
the establishment of "Foodstuffs Purchases and Allocation 
Boards.These Boards were held responsible for the supply 
of specific foodstuffs and had regional branches throughout 
the country. 

Those men who had been entrusted by the French Govern¬ 
ment in 1939-40 with industrial and agricultural mobilization 
were largely the same who were to be entrusted by Llarshal 
Petain with the. task of supervising the pcst-armistice economy 
of the country. 

This supervision was achieved in the industrial field 
through two fundamental laws and, in agriculture, by a long 
series of laws and decrees. 

2. Industry . The two fundamental laws referred t-o above 
are those of 16 August 1940, creating the Organizing Com¬ 
mittees, and of 10 September 1940, creating the Central 
Office for Allocation of Industrial Products. 

" r. ; • 

a. T he La w of 1 6 August 1940 ° A threefold necessity 
underlay the law, according to M. Rene Belin, Secretary of 
State for Industrial Product ion and Labor, -in his intro¬ 
ductory Report. Private activities needed 'to be brought, 
within the framework of national requirements; remedies had 
to be found for those industries which suffered from a lack 
of raw materials or from insufficient demands; special as--., 
sistance needed to be granted to those activities which, were 
of particular importance to the majority of consumers. To 
attain these aims "French production required a powerful and 

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- 32 - 


efficient leadership in which state’s and employers’ repre¬ 
sentatives would be closely associated. T? 

As a first step, the government suppressed the pre-war 
national organizations which had represented in the past, 
and on a national scale, the specific interests of employers 
and workers; the ground of the suppression was that their 
activity had been much more political than economic. The 
dissolved organizations included: 

Confederation Gen^rale du Travail 
Confederation Generate de la Production Franpaise 
Comite" des Forges 

Com-ite Central des Eouilleries de France 
The activities of the new Organizing Committees in¬ 
cluded a census of industrial capacity, control of production, 
price control, and adoption of standardized methods of pro¬ 
duction. At the end of 1941, taking account of the lack of 
raw materials and of the German insistence on obtaining 
French workers for Germany, it was decided to resort to 
:f planned product ion.According to a law of 17 December,^ 
certain plants could be temporarily shut down by the Ministry 
of Industrial Production; in that case the Organizing Com¬ 
mittees were authorized to levy special fees on the plants 
which were kept running and to allocate them between indus¬ 
trialists whose plants had been closed to allow amortiza¬ 
tions, payment of bond interest, repair and maintenance. In 
May 1942, Pierre Laval and Jean Bichelonne, Secretary of 
State for Industrial Production, called a meeting of the 
Presidents of the Organizing Committees and informed them that 
the Germans required 350,000 French workers and that French 

IT Journal 0~fficiei~2 3 December 1941. 


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- 33 - 


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industry must therefore find means of economizing on manpower. 
The decision to group productive enterprises together and to 
close down lesser businesses was left by the Germans to the 
Vichy Government, which acted on the advice of the Committees. 
This was a further extension of the responsibilities of the 
Committees. 

Membership in the Organizing Committees is determined 
by an agreement between governmental authorities, namely, 
the functionaries of the Ministry of Industrial Production, 
and employers in the field which is to be placed under a 
Committee. Labor is completely banned from the new industrial 
setup. 

Organizing Committees are placed under State Control; 
a government commissioner, who is practically a functionary 
of the Minister of.Production, must attend their most import¬ 
ant meetings and approve or disapprove their most important 
decisions (Articles 3 and.. 5) . But members of the Committee 
are not'state employees. They are usually private business 
men selected by the government from a list of names prepared 
by the producers in every field. All expenditures of the new 
committees are paid- from fees which are. levied on all members 
of the industry, conaerned; their accounting is submitted to 
the approval of the treasury (Art. 4). 

The Organizing Committee have the broadest powers; 
their decisions are compulsory for all members of the in¬ 
dustrial group concerned. In fact, .some.activities which 
originally belonged to the Committees have been shifted to 
new agencies; allocation of raw materials is supervised by the 
several boards for the allocation of raw materials which will 


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34 - 


be described hereafter; with regard to pi ice control, the 
Committees only act in an advisory capacity. But their contro] 
over production is practically unlimited; plants may be 
closed, workers shifted from one factory to another, markets 
reserved for outstanding producers, and special kinds of 
machinery and .equipment imposed upon certain industries. 

If producers under the Committees fail to respect their 
decisions, penalties may be imposed upon them, with a maximum 
of 10 percent of their actual turnover; violators may also 
be excluded from any participation in the operations of the 
Committees (Art. 7). 

Members of Organizing Committees are usually the 
leading producers in every field or the highest employees of 
leading concerns; there is normally a chairman, or responsible 
director, of the Committee, assisted by vice-chairmen and by 
an advisory committee. A bureaucratic staff is in charge of 
the daily operations of the Committees. At the end of 1941, 
more than one hundred Organizing Committees had already been 
created. 

b. The Lav/ of 10 September 1940 * This law created a 
Central Allocation Board for Raw Materials under the super¬ 
vision of the Ministry of Production. Its chief was, for a 
long time, M. Jean Bichelonne, but it was announced recently 
(December 1943) that General Inspector-Salmon was in charge of 
the central operations of allocating raw materials. This 
Board includes a small staff of statisticians, economists, 
and administrators. Around this Central Board, there are 

i 

twelve Sections dealing with specific commodities: 

Pig Iron and Steel; 

Non-ferrous Metals; 

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- 35 - 


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Coal; 

Petroleum, Gasoline, Liquid Fuels; 

Chemicals; 

Textiles; 

Paper* and Paper Containers; 

Leather and Hides; 

Rubber and Carbon Black; 

Lumbe r; 

Industrial Fats and Soap; 

Building Materials; 

Miscellaneous Commodities. 

Each section is in charge of the allocation of the raw 
materials which it supeivises to industrial users. It super¬ 
vises the purchases, inventories, and sales of these raw 
materials. It can: 

(1) compel producers to sell to certain consumers, and 
consumers' to buy from certain producers; 

(2) prohibit or restrict the use of raw materials for¬ 
cer tain purposes; 

( 3) enforce and supervise the sale of existing stocks 
of raw materials and commodities. 

Each Section is directed by an "Allocator" ( Re-part it eur ) 
assisted by an advisohy committee and supervised by a govern¬ 
mental commissioner. All the decisions of the Allocator are 
submitted to the government commissioner, who has a right to 
veto them. These Sections have regional offices through¬ 
out the country to deal with the local aspects of raw materials 
allocations; for instance, the Coal Section has twelve region¬ 
al offices in the Northern Zone and nine in the Southern Zone. 

There is no German appointee within these Sections, 


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- 36 - 


but in each of them a French employee (e.g., an Alsatian 
with perfect knowledge of German) is in special charge of 
negotiations with the Germans under the Allocator. The Al¬ 
locator deals with 'the most important problems, and the 
specialized employee supervises the daily routine operations. 

From the standpoint of economic collaboration between 
France and Germany, the Central Board and these Sections 
are likely to be much more important add influential than 
the Organizing Committees themselves. They are a true and 
pure bureaucracy with no special industrial problems, and 
their social and human implications, to solve. 

Their members (Allocators and their staffs) do not 
belong to the regular French civil sexvice; the Allocators 
are selected by the Minister of Industrial Production, gen¬ 
erally among former high employees .of French industry, and 
they select in turn their own staff. They are usually much 
better paid than regular French governmental employees of 
similar rank; in fact, there is no clear-cut distinction be¬ 
tween the bureaucracy of the organizing Committees and that 
of the Sections of Allocation with regard to background and 
social origin. It even happens that an Allocator is simul-. 
taneously the responsible leader of some important organizing 
Committee; such has been the case for textiles. 

The Organizing Committees serve as the channel 
through which German orders are passed to individual . enter¬ 
prises. The procedure in placing an order is as follows: 
once the necessary permission for placing the order in France 
has been secured in Germany, the order is forwarded to the 

' i 

Zentralauftr a gsstelia (Central Order Office) in Paris. If 
Geimany grants raw .materials for filling the order, as is 
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- 37 - 


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the case with steel, German vouchers for the raw material 
accompany the order and must be exchanged for French vouchers 
to be given to the enterprise taking the order. Before 
final placement the Zentrala u ftragsstelle , which is responsible 
to the Ministry of Economics, must obtain the sanction of 
the Economics Section of the German Administrative Staff in 
France, responsible finally to the Supreme German Command 
and therefore the' guardian of the interests of the Army. 

Finally the order, with any accompanying vouchers, is handed 
to the Organizing Committee to be allocated to the manufacturer 
or manufacturers who can best fill it. The representative 
of the German Economics Section on the Organizing Committee 
is present when this allocation is made. A person who es¬ 
caped from France in March 1943 brings.the report (unconfirmed 
by any other evidence at hand) that the.Germans have stopped 
buying French goods and closed the German purchasing offices 
in Paris. This appears to refer to the Ze ntralauftragsst elle. 

3. Agriculture 

a. General O r ganiza tion. Agriculture was organized 
on lines roughly similar to those for industry. The asso¬ 
ciations regulating production are the Allocation Offices. 

They control the collection of crops, which are then handed 
over to distributing agencies, except for a few specific 
products controlled by special .organizations. Cantonal 
commissions under the Allocations Office collect produce, 
give the producers pay vouchers according to the purchase 
prices fixed by the Secretary of State for Agriculture, and 
dispatch the supplies collected. These commissions operate 
under departmental directors. If collection is difficult 

T7 Tissier, Pierre, Government of Vichy , pp. 250-51. Law 
of 27 September 1940. 


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- 33 - 


requisitions may be issued to producers through the mayors 
of communes, and, if necessary, the gendarmerie may be 
ordered to seize the goods. The Germans have named agri¬ 
cultural leaders (Landesftihrer) , one for each arrondissement, 

1 

to keep detailed accounts of the production of individuals. 
Joint Committees performing functions similar to those of 
the Allocation Offices have been set up for special products, 
such as wheat and other cereals, wine, dairy produce, horses 
and mules, fisheries, vegetable oils and fats, and meat. 

These products are removed from the competence of the Alloca¬ 
tions Offices. A central committee is charged with the al¬ 
location of the product^ such as fertilizers or feed, most 

2 

indispensable for agriculture. 

Agricultural producers are grouped together in a 
corporative system, membership in which is compulsory. This 
is composed of communal units, regional units, and a national 
unit, the whole under state control. Regional Chambers of 
Agriculture, which replace the old departmental chambers, 
are composed half of delegates from the regional corporative 
units and half of appointees of the Secretary of State for 
Agriculture. 

The regional prefect, representing the national 
government in the field, has economic powers which he exer¬ 
cises in conjunction with an Intenaant des Affaires Econo- 
miques , who is usually a career administrator with much 
knowledge and experience. The prefect exercises supervisory 
control over all other national personnel dealing with 
economic matters. His authority covers agricultural and 

TT Lib^r \tl~ ( Zone ~~ Sud ) , 15 Hay 19A3 . 

2. Tissier, p. 251. Law published 14 June 1941. 

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- 39 - 


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industrial production, supply, labor, transport, and national 
productive equipment. Ministerial decrees are passed on 
to. the regional prefects and intendant s, who make- the 
.detailed provisions necessary for their execution. Pre¬ 
sumably it is the regional prefect that a local German com¬ 
mandant would, consult concerning local economic, matters. 

b. Agencies to Improve French Agricultur e. The Germans 
have given some publicity to their efforts to improve the 
standards of French agriculture in Northeastern France. It 
has-been claimed that, during the ye at s 1941 and 1942, in 
Northern and - Northeastern France 160,000- hectares of land 
had been placed under cultivation, and that / with the • introduction 
of modern methods of cultivation the yield' of the ground 
had increased considerably. German propaganda has- traced 
this improvement back to a special office- which the German 

military authorities cieated in order that it might work 

2 

exclusively towards better French agriculture. 

• The Ostland Society, created originally to operate 

in Poland, was charged with the exploitation of "abandoned" 

farm lands in the Forbidden Zone. According to the Hambirger 

Fremdenblatt of 3 October 1941, this organization has a 

main office in Paris with branches in Amiens, Laon, 

3 

Mezieres-Charleville,-Nancy,-and Dijon. Field Commanders 

( Feldkommandanten ) in the r egions where thb Ostland is 

4 

active name administrators for abandoned holdings. The 
Charleville headquarters is reported to be headed by a 
German civilian and to maintain subordinate offices for the 

TT Tissier, p. 138. Law published 26 August 1941. 

2. Short-wave broadcast, 22 December 1942, from Berlin to 
Forth and South America.in, Spanish. 

3* til Marseillaise , 23 June 1942, p. 4- 
4. V0B1., 24 November 1940. 

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- 40 - 


arrondissements of Sedan., Rethel, Vouziers, Rocroi, and 
Stenay. Under these offices axe officials for each canton 
and for each commune. The last are often Austrians, Czechs, 
or Poles. In 1942 the name of the organization was changed 
to Reich-sland , and the Amiens and Laon sections were merged, 
the others remaining the same. By the end of 1942, 141,208 
German settlers were officially repoxLed; the number may 
actually be much higher. 1 Cultivation is carried on in 


large tracts, fences having been knocked down. The product 


goes directly to Germany. 

Laborers 

used 

are French 

prisoners 

of war, deported 

Lews, and 

Poles. 




Acc or ding 

to French 

sources, 

the 

Reichsland 

Society 

had introduced by 

the first part of 

1943 

about 18,500 Poles 

in Eastern France 

as folio- 

vs : 




Departments 

Men 

Women 


Children 

Total 

Aisne 

300 

400 


500 

1,200 

Ardennes 

7,000 

— 


-- 

7,000 

Somme 

32 

51 


14 

97 

Meurthe et 

Moselle 

790 

-- 


959 

1,749 

Meuse 

4,900 

j. — 


3,600 

8,500 


13,022 

451 


5,073 

18,546 


4. German Use of French Machinery of Control . German 
administration through French officials and institutions 
has been successful in the economic field. It has been, 
possible to limit drastically personnel in the ten groups 
of the Economics Section of the German Administrative Staff. 
(These groups are: General Economic Questions, Land, 
Forestry, Industry, Foreign Trade, Transport, Labor, Credit, 
Finance, and Price Questions.) Often one. administrative 

lT Pour" 1a Y icto i feT ~T7 April 1943. 

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- 41 - 


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councillor and a single typist can administer an entire 
section.^ A report from a reliable source, recently escaped 
from France, indicates that, economy of personnel was not 
the rule in the field offices. Three to four hundred 
German civilian officials concerned with . economic and- finan- 
cial matters were stationed in Toulon (this.probably includes 
personnel attached to other agencies as well as to Dr .-Michel ’ 
economics section). 

:5. German Organizations in-France Exercising Economic 
Controls . The Verbindung ss telle Frankre ich is an outgrowth 
of the former German Chamber of Commerce in Paris'. It 
acts principally as an economic information department. The 
branch in Paris was established in 1940, and in 1941 another 
branch was established in Lyon to insure closer contact 
with the industrial regions of the Vichy Zone, Through the 
Organizing Committees German orders could be placed in the 
Vichy Zone, but no detailed supervision such as visits to 
factories was possible f6r the German administrative person- 
nel established in the Paris Zone. In the Vichy Zone such 
direct contact with French production was maintained by 
the Armistice Commission and its local commissions or 
subcommissions. 

A fairly.recent creation in German economic adminis¬ 
tration in France is the Beschaf f ungsa mt, whose'purpose is 
to coordinate the work of various German agencies in order- 
better to use French productive capacity. The German 
agencies involved axe: Dienststelle Par is des H eereswaffenamtes 

IT Hakenkreuzbanner (Ilannheim) , 4 December 1942 (article by 
Dr. Mi chef) . 


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- 4-2 - 


Aussens telle des Haup t ausschusses III P anzer und Zugmaschinen , 
Verbindungsstelle ftir Mar i ne - Be s c ha f f u nge n, . Verbindungsstelle 
Paris des G eneralluftzeugmeisters , Beschaffungsstelle des 
Luftgaues West frankreich , offices in France of We-hrmac h t b e s - 
chaffungsamt , Aussenstelle Frankreich des Gen e ralbevollmach - 
tigten f. d. Ki-a ftfah rive sen , A ussenstelle der Gen . Vev. f Ur 
die Technischen Hachrichtenmittel , Dien s tsteile d_e_s 
Gen . Bev . ftir die Chemische E rzengung , Zentr a lste-lle ftir ' 
Generatoren , Zent r a-Kiaf t , Bevollmacht igte ftir die Kasohinen- 
produktion , Beschaffungsstellen der SS , Organisation Todt , 
Reichspost , and Reichsbahn . The Beschaffungsamt must work 
closely with Dr. Michel's staff and with th.e Zentralauftrags - 
stelle , as well as with the French authorities through a 
French delegate and through the Organizing Committees. .This 
office particularly wants to secure French cooperation in 
the production of arms and means to use force, only if persua¬ 
sion is ineffective. 

Various powers of the German administration enable 
it to exercise many special controls affecting the whole eco¬ 
nomic system. An order of 7 May 1943 by the Military Governor 
rules that any judicial acts affecting means of production 

must not be executed without special authorization by him- 

2 

self or his delegates; in other ¥70113 no person having a 
claim against a firm manufacturing or capable of.manufacturing 
for German order can have a judgment executed to satisfy 
that claim without German permission. The German authorities 
also exercise wide control through the allocation of trans¬ 
port facilities. In the case of railroads and inland water 

1. Speech of Generalmajor Thoenissen at opening session. 

1 September 1942. 

2. Cited in Petit C omtois , 15 May 1943 (via FCC ticker). 
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- 43 - 


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transport the French Government controlled operation of 
such facilities before the German occupation. With German 
requisitions of rolling stock and general increased ..pressure 
on the railroads it became necessary for the Germans to 
participate with French authorities in the allocation of 
freight transportation. German authorities in France dealing 
with railroads are the Wehrm acht sve r kehr sd irekti on and the 
Eisenbahnbetriebsdirektion (the latter including a security 
unit). All French traffic managers are duplicated by German 
administrators. Extensive control is also exercised through 
the allocation of raw materials and of power; by this means 
many French industries Were forced to close'. The Organizing 
Committees determine all such allocations upon, receipt of 
statements of need from Individual enterprises. 

6. Price Contr ol. The exercise 'of- price controls is^ 
in general a duty of French authorities. However, a broad¬ 
cast of 15 June 1943 from Paris 1 is revealing as to the 
interference of German authorities in the process: w Deci- 
sions of French authorities concerning prices, published■ 
in the Bulletin O fficiel des Services des - ?xix , or in.the 
Journal Offici el, are considered as having been decreed" with 
the approval of the German authorities.'^ Indeed, no. material 
may be so published without such approval. 

7. German P ene tration into French Eco nomic'Life . German 
administrative controls over French industry include a sub¬ 
stantial infiltration of managerial and expert technical per- 

2 

sonnel into individual enterprises. A TASS dispatch fxom 
Geneva indicates that 140 such people, from G5ring f s head- 
quarters, arrived sometime in January 1942* From the earliest 
17 FCCl Ticker, 15 Tune 1943- 

2*. Kaskeline, C hristian Scienc e Monitor , 26 January 1943. 

3. FCC report, 7" January 1942, 

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r -44 - 


days of the occupation German authorities assumed the power 

to appoint temporary administrators for businesses whose 

proprietors were absent, 1 for enterprises under enemy in- 

2 

fluence by virtue of ownership or management, and for 

Jewish enterprises. 1 In November 1940 an ordinance of the 

Mi1itarbefeh1shaber authorized the appointment of special 

delegates of the German administration to factories. These 

delegates are to have full information about the installations 

and the working of the factory and are to have access to the 

books and take part in ali, managerial conferences. Their 

remuneration will be fixed by the authority appointing them 

4 

and paid by the factory. Finally, an unconfirmed report 
from Ztlrich of May 1943 indicates that French factories are 
to be placed under German military command. 1 In any case, 
a certain control over corporations is assured by the rule 
that resolutions of share-holders’ meetings are valid only 
when approved by the Military Governor.^ 

Several different.devices have been utilized by the 
Germans to penetrate into French industry either in.France 
or abroad. First, the Germans have taken over majority or 
minority interests in some important French businesses. 

Second, as a counterpart of the requisitions of French goods, 
the Germans have consented to supply French industry with 
equipment, certain raw materials, and the communication and 
use of technical processes. Third, a certain amount of 
liquidation of French interests in Central and Southern 
European countries has taken place in which, as these countries 

17 V0B1'.',' 21 June“T940. 

2. Ibid., 5 October 1940. 

3. Ibid ., 20 October 1940 and 25 May 1941. 

4. Ibid., 30 November 1940 . 

5. FCC Ticker, 5 May 1943. 

6. V0B1 ., 6 October 1941. 

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- 45 


restricted 


were occupied by Germany, the French were offered in many 
cases the alternative of being paid or seeing their proper¬ 
ties confiscated. 

a. Acquisi tion of Interests by the Germans . One of 
the most spectacular achievements has been the establishment 
of the Franco-German concern, Francolor, to take over the 
widespread Kuhlmann dyestuffs interests, with a 51 percent 
German participation 'in the share capital) subscribed by 
the I.G. Fa rbenindustiie . 

The Germans have also acquired an interest in the 
publicity side of the Havas agency. 

The France-Rayonne company was formed at the begin¬ 
ning of 1941 under German pressure, by the amalgamation of 
nineteen French corporations normally engaged in cellulose 
and casein artificial textiles manufacture, with' a working 
capital of 200 million francs. All these corporations 
retain their financial individuality but are tied to France- 

Rayonne *by a stock company-par tnership, in proportion., to. 

their productive capacity. Viscose producers have 85 shares; 
acetate silk producers have 15 shares; casein producers only 
4 shares. Meanwhile.-, the Germans themselves, on 20 Febru¬ 
ary 1941, had set up a broad cartel embracing any kind of 
industrial and commercial activities in the realm of arti¬ 
ficial textiles -- the Fellstoff und Kunstseide wing. 

Under the terms of a ten-year agreement, 33 percent of the 
France-Rayonne T s capital is in the hands of the German 
Ring. France-Rayonne owns a new factory which was to be 
built in Roanne, about fifty.miles from Lyon. This factory 
was built according to German plans and outfitted with 
German equipment. Raw materials and wood pulp were also 

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-- 46- 


supplied by the Germans, who sent a few technicians to 
supervise the management of the. plant i The factory started 
its operations on 27 April 1942. 1 

The French Government, however, seems to have suc¬ 
ceeded in securing the voiding of many negotiations tending 
to bring about German participation in French industry; in 
the autumn of 1940, the sale to "non-residents ST of French 
shares and participations was prevented by the French Govern¬ 
ment, In fact, such a deal as the Francolor one had to be 
approved by the Vichy Government, and it may even be surmised 
that the Government itself imposed that deal on the French 
chemical industry, 

b, German Supplies of Certain Raw Materials . When the 
Armistice of June 1940 was concluded, important stocks of 
cotton, wool, and jute had been piled up both by the industrial 
and by the Army Quartermasters. Most of them were delivered 
to the Germans, The seizure of these stocks, together with 
its implications for the future of French textiles, was studiec 
jointly by the German textile experts, the French Ministry 
of National Production, and French industrials, ana their 
conclusions were embodied in the so-called Kehl-Plan. Its 
main features were as follows: 

' 

(1) All stocks of wool, jute, and cotton which 
had been purchased by the French Quartermasters and piled 
up in French ports and in the occupied part of France were 
to be delivered to Germany. 

(2) An important quantity of wool, of different 
kinds, accumulated in manufacture in Northern and Western 

1. Agenee Economique et Financi^re , 10 June 1942, 


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- 47..- 


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France, was also to be delivered to German industrials and 
to the German Army for the needs of the occupation, corps. 

(3) ..France was also required to deliver a large 
percentage of collection of its rags and Wastes, as well as 
of its wool and flax current crops, to Germany. 

(4) As a counterpart of these deliveries, Germany 
would supply France with raw materials for the manufacture 

of artificial fibers; these would consist chiefly of wood 
pulp and of some paper twine to replace jute. It was also 
agreed,that, the Germans- would■,supply France with German 
equipment and machinery, as well as German methods and 
patents. The Kehl Plan, therefore, aimed not merely at the 
exhaustion of French resources, but also at the bringing 
of the French textile industry within the German orbit. 

c. Liquidation -of French Investments Abroad . In case 
of agreement between the German authorities and the French 
owners, the French insisted upon payment either through the 
clearing system or in Divisen or equivalent. One exception, 
however, was the 'sale...of the Mines de Bor, a French-owned 
'copper-mine in Jugoslavia, negotiated by.;Laval. Payment 
for the sale was to be made from the occupation costs. 

In the case of the Yugoslav Charbonnages de Trifail, 

the Roumanian Petrol Companies of Colombia and Concordia, 

. 

the Banque Commerciale; Roumaine, and the Barque Gdnerale 
de CrdcLit Hongrois, payment was to be made by the transfer 
of French external bonds issued in Holland, which had been 
obtained by the German. 

Further liquidation included the relinquishing of the 
Schneider participations in the Societe^des Mines et Forges 
and the Berg und ffutterswerks-Gesellschaft in Czechoslovakia, 


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- US - 


which were acquired by the Bohemian Union Bank, and the 
Societe" de's Us’ines de Fabrication des Tubes et des Forges 
de Sosnowicerin Poland. 

French capitalists with investments in German firms 
like the Deutsche Bank, Earpener, etc;, were obliged to sell 
their share to the Germans at the normal Berlin stock- 
exchange rate; the sums were transferred in French francs 
at the official rate of 20 francs for one RM. 

Beside such administrative controls as have been noted, 
the Germans exercise still other controls in a number of cases 
through the ownership of shares in French companies. It is 
said that Germans have insisted upon acquiring shares in 
return for the allocation of raw materials and have thus 
acquired large interests in all the largest metallurgical, 
chemical, and ship-building firms., .and 75.percent control of 
iron ore production in the Briey Basin.^ 

C• Controls over the Use of Manpower 
1. Labor for Production-in France . 

a-. Labor Organization under the Third Republic . 

Labor organizations in France under the Third Republic had 
various bases • ..Starting from the smallest unit, which 
organized the. workers of a particular industry in a particular, 
locality ,.these, units were combined into horizontal association 
( unions ) including all the units of the locality or depart¬ 
ment, vertical associations ( federations ) including all units 
of a particular industry, and,, finally, contender at ions , 
joining together unions and federations .with similar 
religious,, political, or social tendencies. 1 2 Theoretically 
these .groups were bound by law to limit their activities 

1, Christian Science Monitor - 29 August 1941. 

2. Tissier, op. cit .,~pY ll6. 

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- 49 - 


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to those..interests of their members arising directly from 
their employment; actually they had been, long before the 
German invasion, transformed into political organizations 
using the power .of money or the power of numbers to influence 
political powers . 1 

b. Labor Organization under Vichy . ' The power and 
independence of the labor organizations were intolerable to 
Vichy, which also found their voluntary membership and 
elected officers incompatible with'the theories of the new 
French state. The whole system was not immediately sup¬ 
pressed, . but a law of 16 August 1940 automatically dissolved 
all the confederations and permitted the dissolution of those 
other associations whose activities might be found to be 
injurious to general economic activity.2 The departmental 
unions became the most important centers of labor- union 
activity. Many of the units continued their political 
activity underground as resistance groups, but a number of 
union officials assumed posts in the Vichy Government and 
tried to.bring union membership to collaboration. A number 
of new semi-official coordinating groups were set up to 
perform the functions , of the confederations in regard to 
purely economic activity, to : which labor organizations were 
now strictly limited. 

c. Vichy Labor Charter . The above' Vichy set-up was, 
however, only temporary. A decree of 4 October 1941 set forth 
a labor charter for France.3 -Its publican; on in the Journal 
Officiel indicates that it had been given German approval. 
French workers, according to the charter, are to be organized 


1. Ibid ., p. 83 

3 * Journal^ Officiel de l'Etat Frangais , 26 October 1941. 

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- 50 - 


in professional unions on a vocational basis. These unions 
are to be set up in every industrial district; there are 
to be separate organizations for employers, workers, 
foremen, technical personnel, clerical help, and other 
employees. The unions are to be coordinated according 
to regions and headed by committees whose task"it will be 
to investigate conditions of work and to arbitrate disputes. 
Each committee is under the supervision of a government 
commissioner, and committee members are for the time being 
appointed, although it is promised that when peace is 
restored they will be elected by union members. All persons 
engaged in an organized activity must belong to the union 
for their special classification, but persons may be 
excluded for serious and repeated violation of labor laws 
or activity contrary to the general interests of the country. 
Dues are deducted from individual pay envelopes and' continue 
to be deducted even if the individual is expelled. The 
provision of compulsory membership means that the unions 
possess complete lists of workers in each trade. 

The organized groups are to insure security of 
labor for their members and the maintenance of various 
institutions for social assistance. Collaboration between 
employers and workers is compulsorily organized in Social 
Committees including the head of the establishment and 
representatives of all classes of personnel (workers, 
foremen, clerical help, etc.). These Committees are con¬ 
trolled >by local Social Committees, which are controlled 
by regional Social Committees; the latter are in turn 
controlled by the national Social Committee. Members of 
regional and national Social Committees are appointed by the 

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industrial Organizing Committees, with which a German 
representative sits. Indeed, the union executives are • 
appointed at every stage by the Government, and their 
proceedings are secret. Therefore they have no dependence 
whatsoever on the workers whom they theoretically represent. 
All the former labor organizations were to be dissolved as 
soon as the new ones were ready to take over, and their 
funds and property were transferred to the new ones. By ' 
January 1943, 2,900 Social Committees had been registered 
with the Central Bureau of the Social Committees, 

Until the program for sending laborers to Germany • 
had removed a substantial number of workers from France, 
the hiring of labor for work in French factories was no . 
problem. On the contrary, yichy had to take drastic measures 
to combat the unemployment; produced by lack of raw materials 
and power and the consequent closing of factories. Little 
or no difficulty was experienced in hiring laborers for work 
in the factories still functioning. But by April 1942 
the need for manpower was being felt throughout French 
industry. To free workers, hours of work were being 
lengthened. A decree of the German Military Administrator 
for France states that German authorities may-regulate . 
hours of work. The; Military Governor himself determines 
hours when a whole region or a whole branch ‘of industry, 
if to be affected, while the Feldkomnandant may determine 
hours for an individual enterprise. Employers are required 
to submit to the Feldkommandantur statements" of the number 
and type of workers released through the lengthening of 
hours of work. 1 

IT V0B1 ., 30 ~pril 1942. 

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/ 


2. Labor for German Auxiliary Army Groups in France . 

a. Organisation Todt .., Beside working on German 
orders in French factories, a number of French workers 
are engaged directly in German projects in France. Most 
such workers are employed by the Organisation Todt for 
work on fortifications, especially along the Atlantic 
and Mediterranean coasts. The number of camps of the 
Organisation Todt in 1941, when intensive construction 
of fortifications was begun, was 50 to 60;,by 1943 the 
number was over 450.^ Comprehensive figures on the number 
of workers involved are lacking. The number demanded for 
work on Mediterranean fortifications was said to be 
100,000. 2 Soon after German occupation of the Vichy Zone 
4,000 workers were recruited to work in Toulon alone. 

The total requests for new recruits for the Organisation 
Todt in April 1943 was estimated "to be about 200,000. 

It is possible that not all of this number were to be 
recruited for service in France. Indeed many Frenchmen 
are serving the 0T in Germany, on the Eastern Front, and 
wherever labor in connection with military installations 
is needed. On the other hand many Dutch and Belgian and 
other workers have been brought into 0T camps in France. 

The ranks of the Organisation Todt are fillfed by 
various means. In some cases men serving their term of 
compulsory service in labor camps have been set to work- 
under its direction.^ Internees have been taken from their 
camps and set to work also. In the summer of 1942 over 

1. FCC report, 11 June 1943 (Transocean). 

2. New York Times, 1 April 1943. 

3. News ticker, 13 April 1943 (report from Berne). 


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- 53 - 


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twenty-five German employment offices were, operating in 

* 

the Vichy Zone to recruit labor for Germany* In each of 
these there was a representative of the Organisation 
Todt, who could presumably pull out any recruit he fancied 
or draw his quota from the rolls. Under the. Vichy com¬ 
pulsory labor laws, French authorities provided such 
personnel as the German authorities demanded. According 
to a law published in the Journal Official, prefects or . 
mayors who have been appointed by them may call up any- 
French national from eighteen to sixty-five years, of age 
for labor service with occupation troops in the Vichy 
Zone. 1 The' extent or reliance on this kind of recruitment 
is not- indicated. 

Like the factories working*for Germany, the.Organisa¬ 
tion Todt suffered from the demand for more and more workers 
to go to Germany. Many young men assigned to the OT were taken 
directly from the OT camps and sent to Germany. 2 3 This means 
that many had no.chance to visit their homes before leaving; 
it may be a device to facilitate the.sending of_full con¬ 
tingents to Germany by not allowing any opportunity to go 
into hiding and escape deportation. 

The Organisation'Todt in France is directed by a 
Frontfflhrer from a central office in Paris. A delegate 
of the French Government is attached to the office to convey 
to the French authorities any German decisions. The OT 
also has a number of French social inspectors who serve as 
liaison agents between the French workers and the German 
authorities. 3 They are recruited principally from French 


1. FCC: ticker, 16 July 1943. 

2. FCC report, 22 June 1943 (Lyon radio); 

3. News Digest, 16 April 1943 ( !'Atelier , Paris, 


13. March 1943) 


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- 54 - 


volunteers who have served in Russia. 

Once a worker has been enrolled into the Todt, there 
is no possibilit}?- of leaving. An or donna nee issued by the 
Militarbefehlshaber on 18 December 1942 renders, Todt 
employees guilty of attempted escape liable to the death 
penalty. The Germans have allowed no official French 
intervention between the Todt and the conscript workers. 
Vichy officials admit’the absence of any French influence 
in the Todt labor camp, and the workers have not even the 
nominal protection of a French organization to safeguard 
them against the arbitrary will of their employers. 

b. Technische Nothilfe . The Technische Nothilfe 
apparently does not function in the German administrative 
area of France. While its extension into Belgium and 
Northern France is contemplated, there are apparently 

no plans for its use in the rest of France. 

c. NSKK . Units of the NSKK (one report specifically 

mentions ten thousand drivers and mechanics) collaborate 

- 

with the OT in work on fortifications. From the context 
these appear, however, to be Germans rather than Frenchmen. 1 

3. Labor for Production’in Germany . .With the return 
of Laval to power, the recruitment of French labor for. 
Germany started on a large scale. German exploitation of 
French labor will be analyzed in the following pages, 
a. Stages of Recruitment . 

i. Initial Stages . The export of labor from France 
to Germany began in 1941, chiefly with the deportation of 
foreign workers. Interned Jews and other refugees were 
the first victims. 

1. Research Bureau on Population Movements, Ponulation 
Displacement of France , 31 August 1943, p7'l3T 

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- 55 - 

Recruitment of French nationals for • wdrk in Germany 
remained voluntary. Propaganda was launched to persuade 
Frenchmen that labor in the Reich was- remunerative, comfortable 
and secure whereas wages in France, blocked by-German 
pressure, lagged hopelessly behind prices, and the standard 
of living among: working-cdas'S: familiea was rapidly declining. 

: Unemployment relief ( allocations de chomage ) to 
unemployed workers was sometimes refused on the ground that 
work dpuld be secured: at. the German Labor, Exchanges ( Offices 
de Placement ). Volunteers secured their labor, contracts 
through-the German Labor Exchanges; these contracts specified 
pay and duration of the workers’ stay in Germany. 

On 1 June^ 1942, before the. beginning of the releve, 
it was estimated that.160,000 French workers had left for 
Germany since the Armistice., but that, since many of them 
had returned to France, the total number of those still 
occupied by. the Nazis did not exceed 70,000. 

ii. Concentration of Industry and Cpmmerce . 

On 17 December 1941, 1 because of the lack, of raw materials 
and of German insistence.on obtaining French manpower for 
Germany, the first law empowering the Government to reorganize 
production was promulgated. In May 1942, Pierre Laval and 
lean Bichelonne called a meeting of the presidents of the 
Organizing Committees and informed them that the.Germans 
required 350,000 French workers and that French industry 
must • therefore find means, of economizing manpower. The 
decision to group productive enterprises and to close 
down businesses ms left by the Germans to the Vichy 
Government, which acted on the advice of the Committees. 

IT Journal Officiel , 23 December 1941. 

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By the end of 1942 about 10,000 factories had been closed 
down. 

On 24 April 1943, all prefects of France were convened 
by Laval and Bichelonne, and it was announced that 240,000 
workers must be transferred : from commerce either to fill the 
gaps left by the departure of industrial workers or to make 
up the contingents which the Germans were demanding for 
export to the Reich. - 

. iii. The Relive . In a speech broadcast on 22 Tune 
1942, Laval launched a new recruitment drive; the liberation 
of the prisoners was made the ostensible excuse^ for the 
deportation of the workers. This was the releVe which has 
resulted in three distinct agreements passed between Laval 
and Sauckel, General Commissioner for German Labor. 

• In June 1942, the Germans agreed to -repatriate 
50,00.0 prisoners in return for 150,000 skilled workers. 

At the end of December 1942, the Germans offered another 
50,000 v in exchange for 250,000 workers. In April 1943 
they demanded 220,000 deportees' and an additional' 190,000 
French, workers for employment in France^; further,, releases 
were to continue and in addition 250,000 prisoners in Germany 
would be transferred to civilian status. 

On 21 October 1943 another agreement was announced* 
older workers would now replace the new ones and the ratio 
was to be one to one. It must be stressed that the Germans 
have never felt themselves in the least bound by these 
agreements. 

iv. Compulsory Deportation . In theory releve in¬ 
cluded only volunteers. But from the summer of 1942 on, 
compulsion was already being applied in the North Zone. The 
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. 



- 57 - RESTRICTED - 

Germans demanded quotas of men from different localities and 
organized . j o.int .Franco-German economic commissions to decide 
on the number of workers to be provided from individual 
factories; it was left .to the employers to designate those 
who had to leave. After total occupation the system of 
designating individuals for deportation was.extended.to the 
whole of France. 

Finally, the conscription of labor was introduced by 
the law of 4 September 1942. All men from eighteen to fifty 
years of age and women from twenty-one to thirty-five became 
liable to placement in work- considered by the government to 
be of national importance. Every French citizen of the 
designated age group;must either be in a position to justify 
his employment as being in the national interest or. must 
accept compulsory transfer to other-work. Further, employ¬ 
ment and dismissals : can onl}? - take place with the assent of 
the. local representatives of the Secretary of State for Labor* 

A census of unemployed and partially employed workers 
followed, and a decree compelled employers to place lists 
of their personnel at the disposal of the local Labor 
exchanges. 

The law of 25 November reinforced the powers of the 
prefects and the Secretary of State for Labor. The follow¬ 
ing list of categories of workers, arranged in the order 
in XAhich they would be called up, was included in the text 
of the new law: 

Unemployed. 

Partially employed. 

Persons employed in enterprises obliged to limit or 
reduce their activities under the terms of the decrees on 

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- 58 - 


the concentration of industries. 

Persons employed for less than forty-eight hours a 

week. 

Persons employed in work not essential to national 
welfare. 

On 2 February•1943 the prefects were ordered to pro¬ 
ceed to a general census of men between the ages of tv^enty- 
one and thirty-one. On 15 February there was passed a law 
making two years’ labor service in agriculture, workshop, 
or factories compulsory for all men born between 1 January 
1920 and 31 December 1922. Certain categories of workers, 
including coal miners, peasants, firemen in Paris, Lyons, 

Marseilles, members of the police, gendarmerie and gardes 

- 

mobiles , and railway employees, were to be reserved. Students 
would not be called upon to leave until the end of the 
academic year. 

On 15 February Vichy decreed that, in order to fill 
the gap left by the departure of specialized workers - , it 

would henceforth be -compulsory for factories belonging to 
specified branches of industry to organize professional 
training. The expense would be partly or wholly refunded, 
by the State. 

On 27 March it was announced that all Frenchmen betweer 
the ages of eighteen and fifty, in industry, commerce, 
banking, insurance, and transport, were henceforth obliged 
to carry a labor certificate given by the employers or the 
mayors. Holders of such certificates were forbidden to 
leave their work without an official transfer order from the | 
Commissioner General for Compulsory Labor. 

On 18 May it was decided' that, in view of the failure- 
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- 59 - 

of the census ordered under the terms of the February dexrree, 
a new census of the three conscripted age-groups would be 
undertaken. Each young man would receive a labor card which 
he would be required to carry together with his identity 
card. The labor cards/were distributed by the mayors and 
not by the employers; they were compulsory for all members 
of the relevant age-group instead of only for those belonging 
to specified professional categories. On 31 Nay, Vichy 
announced the suppression of almost all exemptions in the 
class which would have been due to be called up for military 
service. Remaining exemptions were: refugees from Alsace 
and Lorraine, colonials, freed prisoners of war, ex-combatants 
of the LVF , and young men who had completed more than two 
years’ military service. It was also stated that all men 
of the ’41, T 40, and the last quarter of ’39 classes would 
leave for Germany unless they belonged to the reserved 
occupations defined in the law of 15 February. 

On 1# October, when the fourth Laval-Sackel agreement 
was announced, the French Government declared its intention 
of incorporating the ’43 class into the age-group subject 
.to compulsory labor. 

v. Conscription of Special Categories . 

(1) Doctors . The Germans announced in March 
1943 that the medical staff of the demobilized Armistice 
Army was to be transferred to Germany. All the military 
doctors under forty, not exempt by reason of health, have 
subsequently been sent for a period of one year’s service. 

On 24 June Vichy announced that the entire medical profession, 
including students and women, were liable to conscription 
and that the Secretariat d’Etat a la Sante et a la Famille 


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- 60 - 


would nominate those required for work in Germany. 

(2) Railwayman * The Germans have demanded the 
transfer of workers from the SNCF to the Relchsbahn. They 
name the size of the contingents, leaving it to the French 
Services to organize' and allocate local recruitment. 

(3) Postal and Telegraph Workers . Transfer 

of specialists from PTT to the Deutsche Reichspost has been 
demanded by the Germans. The French services were left, 
to organize their own recruitment. 

(4) Miners . Here a reverse trend has taken 
place. Miners have been exempted from the successive con¬ 
scription measures, and young conscripts have been diverted 
into mining as an alternative to compulsory deportation. 

b. Machinery of Control . The laws of 4 September and 
25 November 1942 had divided the responsibility for enforcing 
conscription between- the prefects and the officials of the 
Secretariat of State for Labor. On 19 January 1943 a new 
Direction de la Main d 1 0euvre superseded the Commissariat 
iil Patte contre le chomage . 

But on 24 February a Commissaria t General pour le 
Servic e du Travail Obligatoire , under the direct control of 
Laval, was set up; it replaced the Direction de la Main 
d T Oeuvre . Robert Eeinmann was-appointed Commissair-e General , 
and regional and departmental delegates were appointed to 
cover the whole of French'territory. 

On 20 August Weinmann became Commissaire General Inter- 
minis terial v a la Main d’Oeuvre under a committee of direction 
composed of the Ministers of National Economy and Finance, 
education, Lapor, Industrial Production, Agriculture, and 
Food Supply. 

But the prefects remain entrusted with major parts 
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- '61 - *" 


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of the deportation schemes. In cooperation with the 
mayors they are responsible for seeing to the departure of 
those who had been called upon for work in Germany. It is 
also to the prefects and mayors that the German authorities 
turn when they require local labor for fortifications, 
armaments works, and guard duties. 

c. Results . At the end of June 1942 about 160,000 
workers had left France for Germany, but, taking account of 
those who had returned to France, about 70,000 were assumed 
to be still in Germany. 

From 1 June to "31 December 1942, the departures were 
as follows according to German and French sources: 

Skilled workers Unskilled workers Total 


German source 

127,990 

111,760 239 

French source 

137,410 

102,970 240 

• For the first- 

semester of 1943: 

, the departures have 

been as follows: 




Monthly 

Total 

.January 

59,400 

59,400 

February 

63,100 

122,500 

March 

123;000 

245,500 

April 

17,600 

263,100 

May 

21,000 

284,100 

Up to 24 June 

66,200 

350,300 

24 June-13 July 

39,800 

390,100 

Therefore, up 

to 14 July 1943, 

700,000 workers had 

been occupied in Gem 

aany. Of thesu, ; 

about 400,000 were 


skilled. To these 700,000 workers, it is necessary to add 
250,000 former war prisoners released for work in Germany. 


This brings to a grand total of 950,000, not including 


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- 62 - 

workers returned to France since the beginning of July 
1942 and those who died in Germany (notably as a result of 
Allied bombings). 

D. Controls o v er Financial Activity and Foreign Trad e 

1. Thu Reichskreditkasse . The earliest of the German 
financial controls were imposed through the R eichskruditkasse , 
with currency manipulation as the means of control. German 
soldiers entering France were supplied with Reichskreditkasse 
notes and coins which had the status of legal tender. The 
exchange rate was' set by an ordinance dated 17 May 1940*^ 

From time to time thu Reichkreditkass e retired certain de¬ 
nominations of coins which it had placed in circulation. 

The Reichkreditkassen in different countries are responsible 
to the Council of Administration in Berlin. This Council 
is composed of a president named by the President of the 
German Reichsbank and delegates of the Finance Ministry, 
the Economics'Ministry, the Supreme Command, and the Com¬ 
mander in Chief of the Army* Beside regulating the flow of 
currency, payments, and credit in their respective territories, 
they may engage in the following operations to carry out 
the decisions of the Council: buying and selling of com¬ 
mercial paper, making short-term (six months or less) loans, 

accepting deposits without interest, as well as other banking 
2 

operations. 

2. Banking Contro ls. German banking manipulations in 
France have, however, been carried out to a great extent 
through the French banking system. From duly 1940 to July 
1941 there was direct German supervision over French banks 

1. V0B1 ., 21 June 1940. 

2. ‘ Ibid. 


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- 63 - 


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through a German official who was at the same .time commissioner 
to the.Bank of France and head of the Office for the Super¬ 
vision of French Banks, which exercised its supervision over 
all institutions having their headquarters or seat of manage¬ 
ment ( siege social ) in occupied territory. Since branch 
banking was the usual practice in France, the majority of 
banking establishments were under head offices in Paris. 

Certain classes of acts had to be submitted to the Office 
for Supervision for prior approval; if this was not done 

the acts were null and void."*" This form of control was 

2 

ended in June 1941, apparently at about the time the Vichy 
Organizing Committee for banks with power in both zones, 
was ready to begin functioning. As noted above in the 
discussion of German controls over French industrial pro¬ 
duction, the Germans found it advantageous to work through 
such committees, to each of which a German commissioner was 
attached. Activity of German banks in France, through sub¬ 
sidiaries or agencies established there, has apparently 
3 

increased somewhat. 

3. Investment Controls . There is no indication that 
German authorities exercise any direct investment controls 
in France. 7/ith the general lack of other, goods to buy 
there has been a great and increasing demand-for securities. 

To prevent a disastrous boom Vichy introduced a number of 
controls, presumably with full German approval since the 
relevant decrees were published in the Journal O fficial . 

Quotation of bonds and shares on the'Paris stock 
exchange, which was limited to state and other public bonds 

IT V0B1 . , 26“ July" 1940 . 

2. Ibid.. 17 July 1941. 

3. New York Times , 20 October 1941 (Dispatch from Berlin). 


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’restricted - 64 . —. V 

during the summer arid fall of 1940, was'xesujned on 17 March 
1941. But it was immediately J submitted •-to ' the stringent 
regulations enacted by the law of 23 February 1941* It 
stipulated that French or foreign securities could not be 
quoted on the official market or transferred against pay¬ 
ment without the intervention of a b riker, a hotary, or 
an approved bank. All shares were to b made out to a 
riamed holder and not to bOaref. This provision increases 
the difficulty of transferring stocks -- ii operation which 
can be performed only through agents de thrive. This law 
had a twofold purpose: 

(1) to allow a stricr supervision over shares and 
transfers, allegedly to prevent huge purchases by the German 
authorities; 

(2) to prevent hand-to-hand transactions, at prices 
much higher than official quotations, from giving rite to 

a new kind of black market. 

Immodiatuly after the reopening of the Paris Stock 
Exchange, the French Government passed a new law' providing 
for a tax on appreciation in the "Value of transferable 
securities. The rate was 33 percent of the fraction of the 
appreciation above 5 percent after 19 March 1941. This very 
high l^vy was reduced to 20 percent of the earned surplus 
on 27 luly 1941. 

The tax resulted in a sharp decline of stock trans¬ 
actions, but further attempts to curb new rises were made. 
Variations from one stock-exchange session to the other were 
limited to 3 percent; at the beginning of August 1941 only 
1 percent variation was allowed; on 8 August 1941 rises up 
to 2 percent and decreases up to 3 percent were allowed from 


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- 65 - 


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One session to the next. 

In February 1942 a Bourse Committee, headed by the 
Governor of the Bank of France, was established with juris¬ 
diction over all questions concerning Bourse operations 
and with authority to make and keep the lists of exchange 
agents. 

By a law of 5 May 1941, a Comitd Professionnel d 1 Or ¬ 
ganisation des Banque s was set up by the Vichy Government 
with extensive powers of reorganization and control of all 
forms of banking business, including the right to close down 
banks, order mergers, and lay.down rules for business and 
competition. The Comite / consists of a few banking experts, 
appointed by the Minister of Finance, and a government com¬ 
missioner. Its executive organ is the Commission de Controle 
des Banques , consisting of the Governor of the Bank of 
France as chairman, the Director of the Treasury, and the 
head of the Committee itself. 

A large part of French insurance business, particularly 
re-insurance, was in British hands before the war. Since the 
Armistice, the Germans have tried to replace the British, 
chiefly in the field of reinsurance. France has joined the 
German-inspired .European insurance pool, the Vereinigung ftlr 
die Deckung von Gross riskieren. Branches of ordinary German 
insurance companies, such as Gerling-Konsern Allgemeine 
Versicherungs-A.G. and the Aachen-Mtlnchner Feue.rversicherungs- 
A.G., have been opened in France. 

According to the German'-control led press in Paris, 1 
attempts had been made in October 1941 to organize a European 
pool of-insurance. France was represented at the initial 

T7 Nouveaux Temps , 29 October 1941* 


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- 66 - 


negotiations by Jacques Guerard, an arch-collaborationist, 

chairman of the newly created Comit^ des Assurances . 

- 4. Controls over Foreign Trade . In the field of financial 

controls affecting foreign trade, control is exercised 

primarily through French agencies. In the earliest period 

of occupation German military authorities had regulatory 

control over the impoits and exports of all the western oc- 
2 

cupied countries, but such control is hardly unusual in 
time of war. Later the services of the Supreme Command, 
the Reichskreditkasse , and Devisenkommando units were empowere 
to request whatever information they might require as to 

foreign exchange held by, or foreign credits owing to, 
Fienchmen.3 

\ 

The most far-reaching of any of the German measures 
in France has. been the application of control measures at 
the demarcation line between the Paris Zone and the Vichy 
Zone. As far as the Germans were concerned, the Vichy Zone 
was treated for currency purposes as a foreign country. No 
means of payment other .than ten marks in French or foreign 
currency might be taken from the Paris Zone to the Vichy 
Zone. Vichy T s. regulations prevail in both zones insofar 
as they are not - incompatible with German regulations. Capi¬ 
tal in the form of shares may be transferred from one zone 
to the other, but shares of non-French companies may not be 
transferred except into German-occupied territory.^ 

Vichy T s control of foreign exchange involves a strict 
control of foreign trade. The French franc, having been 

1. 3 February 1941"! See Nouvea ux Temps , 30 October 1942. 

2 * VOBl, 21 June 1940. 

3. IbicL ., 29 August 1940. 

4. Neue Zttrcher Zeitung , 7 September 1942 ( News Digest). 


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- 67 - 


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detached from its gold reserves, is to be used.exclusively 
for internal payments and kept strictly out of the field 
of foreign payments. To make this possible, the Office of 
Exchanges, under the Secretary of State for National Economy 
and Finance., was set up to operate in both zones and in 
North Africa.'*' All payments for imports or exports must be 
made through this office. The Office receives payments 
from French importers and pays French exporters in the or¬ 
dinary internal francs; it also pays amounts in gold or 
foreign exchange owing to,-and receives amounts due from, 

. p 

foreigners. By regulating imports and exports m such a 
way as to secure an approximate balance in payments, the 
Office is able to carry on French foreign payments without 
depleting French reserves of gold and foreign currency. 

This regulation is carried out by means of export and import 
licenses, which are required for any such operations. 

But the bulk of French exports — over 70 percent -- 
go to Germany. Franco-German trade is financed under a 
clearing agreement of 14 October 1940. This is a multi¬ 
lateral agreement covering payments between France, on the 
one hand, and Germany, Holland, Belgium, Luxembourg, and 
Norway on the other. The head clearing office is the 
Verrechnungskasse in Berlin. By the agreement, French ex¬ 
porters are paid with French funds, the debt being reim¬ 
bursable by Germany. However, no upper limit is set on 
Germany’s indebtedness, and the French credit at the end 
of 1942 was about 40 ,000,000,000 francs; the rate for the 
calculation of clearing debts is fixed at 20 francs to one 

IT Tissler, op. c it TT P* 268. Law published 1 November'1940. 
2. Ibid ., p. 270. Order of 6 January 1941. 

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68 - 


Reichsmark. The clearing credit, like all French assets in 
Germany, is blocked, still falling under German lav/s on 
trade with the enemy. Although it is generally assumed that 
a large part of German imports from France is paid for from 
occupation levies, no exact figures are available. 

5. Taxation. There has been little direct intervention 
by German authorities in the French system of taxation. The 
Germans exact certain payments on the part of the Fiench 
Government, but beyond that it.is left to find its revenue 
as best it may and to grant such relief from taxation to 
individual Frenchmen as war conditions make necessary. An 
early act of the occupying troops was to rule that customs 
duties, taxes, and other imposts should continue to be 
levied in accordance with the laws in force in the territory 
'before 10 May 1940 (this rule applied to all the western oc¬ 
cupied territories).^ It was also provided that the German 
military authorities might order the imposition of other- 
duties payable in currency, but the evidence at hand does 
not indicate that this power has been extensively used. 

German military personnel in France is exempt from all taxes 
levied -for the benefit of the French. Government, except in 
the case of purchases of merchandise, where a tax paid at 

an earlier stage forms part of the retail price and is 

2 

difficult to separate. 

6. Occupation Costs . The financial situation of France 
has been profoundly affected by the levy of occupation costs 
against the French Government. Article XVIII of the Armistice 
between Germany and France, stipulated that the French 

!.. V0B1 ., 10 July 1940 (orders dated 2.3 May). 

2. Ibid., 26 January 1941. ' ' 

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- 69 - 


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Government should bear the costs of maintenance of German 
occupation troops on French soil, and it is under this 
provision that the levy is imposed. The original figure was 
set at 400 million francs a day or 146 billion a year. The 
costs were at first paid out of the French Treasury, but, 
beginning on 25 August 1940, the Bank of France was called 
upon to make special advances to the Treasury to cover them. 

The amount of this indemnity remained unchanged until 10 May 
1941* As a result of a meeting between Hitler and Darian at 
Berchtesgaden, the daily indemnity was reduced from 400 to 
300 million francs. Since 10 November 1942 and the complete 
occupation of France by both German and Italian armies, and 
up to the Italian collapse, the daily costs had been placed 
at 500 million francs for Germany and 30 million for Italy. 

The total yearly costs have been, then, as follows: 

1940 76.8 billion 

1941 122.5 billion 

1942 121.0 billion 

To finance occupation costs, the French Treasury periodically 
makes special arrangements with the Banque de Fr ance , which 
advances money for that purpose. The Banque has, accordingly, 
opened a new account in her weekly statements, namely, 

"Advances to the State for Occupation Costs." 

These advances amounted to: 

142 billion at the end of 1941; 

211 billion at the end of 1942., 

Since the total occupation costs should have amounted to 
approximately 320 billion at the end of 1942, it may be con¬ 
cluded that about 110 billion have been paid for occupation 
costs either directly by the treasury to the German authorities 


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- 70 - 


or by considering as a part of occupations costs special pay¬ 
ments made by the French banks to French individuals who had 
delivered goods to the Germans. 

The German occupation authorities have, therefore, a 
yearly income of from 120 to 180 billion francs at their dis¬ 
posal to finance the direct costs of occupation, and to pay 
for all kinds of requisition orders placed among French in¬ 
dustrialists, for public works executed in France for the German 
Army, and the like. 

In fact, the Germans do not immediately spend the 
total amounts of their credits; part of them remain earmarked 
at the Banqu e de France as unspent costs of occupation under 
“Current and Deposit Accounts foi the Reichskreditkass e." 

The study of this special account is particularly illuminating 
since it gives a fairly good idea of the tempo of German ex¬ 
penditures in France, "hen it incieases, it means that the 
German authorities do not completely spend what they actually 
receive from France; when it decreases, it means that, on 
the contrary, the Germans not only spend what they actually 
receive but also a part of their special savings at the 
Banque; this may result from a new influx of German soldiers, 1 
from new requisitions, from new public wcqrks, or from all • 
these reasons’ together. 

The Reichskreditkasse account, starting from nil in 
August 1940, reached a maximum of 64.5 billion in December 
1941 and declined sharply from 58.5 billion in April 1942 to 
about 16 billion at the end of 1942 and 8.7 billion in April 

I 

1943. Since April 1943 it has slightly increased. 

For the entire year 1942, the.so-called "Armistice 
expenditures" amounted to 157.1 billion, as follows: 

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- 71 - 

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Billion francs 

Occupation costs 

109.5 

German soldiers’ housing 

11.9 

French-German clearing 

32.6 

Miscellaneous (including 

2.1 billion paid to Italy) 

3.1 

157.1 


Whereas the total budget expenditures amounted to 29&.5 
billion, Armistice expenditures amounted roughly to 53 percent 
of the total expenditures. 

E. Controls over Transportation and Communication 

1. General. It is reported that in February 1941 the 
economic section of the German Administrative Staff had as¬ 
sumed full powers over transport. If so, the Administrative 
Staff functioned by using French officials. It was later 
reported that in the middle of 1942 direction and control were 
transferred to the Reich Transportation Ministry. Here again 
the reference appears to be to the ultimate authority 
rather than to the means of exercising control. 

The Armistice gave Germany immediate control over 
maritime shipping (Article XI), air transport (Article XII), 
railways, roads, and inland waterways (Article XIII and XV). 

In the case of railroads, the French Government was to turn 
over without further damage railway lines and equipment, to 
supply labor for restoration upon demand of the German author¬ 
ities, and to supply personnel and equipment to maintain 
normal peacetime service. A subcommission of the Armistice 
Commission was charged with supervision of the application 
of provisions concerning transport. 

Z. Railroad Transport . French railways had been placed 
under state control in 1937 with the formation of the Societe" 


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72 - 


Rationale des Chemins de Fer (SNCF) , in which the Government 

owned a majority of stock. A majority of the members of the 

Administrative Council of the SNCF was composed of Government 

officials."^ The railways of the Vichy Zone were left under 

the control of the Vichy Government; those of the Occupied 

Zone continued to be operated by the French authorities, 

subject to German control, although some coastal lines were 

2 

operated by German military personnel. Local branch rail¬ 
roads were ? in practice, controlled by the local national of¬ 
ficial, the prefect. Certain modifications in service were 
necessary; these were determined in part by the Secretary 
of State for Commerce, in part by departmental committees 

of three members each, set up to eliminate duplication in 

3 

road and rail services. The German control authorities, 
who presumably dealt with the French officials in charge and 
did not administer the railroads directly, were the 
V/ehrmachtsverkehrsdirektio n and the Eisenbahnbe tr iebsdirektion 
the latter including a special railroad security unit. All 
French traffic managers were duplicated by German administra¬ 
tors, who thus had extensive powers in the allocation of. 
transport facilities. 

3. I lotor Transport . The road network is an important 
adjunct to the railway system. The use of the roads and of 
motor vehicles by Frenchmen is controlled by the French 
Secretary of State for Transport who issues the necessary 
licenses for the use of motor vehicles.^ The issuing of 
licenses makes possible control over the number and type of 

1^ Report of Trade "Commissioner, Paris, 22 September 1937. 

2. Universal Directory of Railway Officials and Railway 

Year-book , 1942-43, p. 2l$T . 

3. Tissier, o£. cit ., pp. 256-7. 

4- Journal Officiel, 1 September 1942 (News Digest). 


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- 73 - 


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vehicles used. Limitations were imposed in both these 
matters; licenses also specified the purposes for which 
motor vehicles might be used. Finally a law on road traffic 
was put into force as of 1 April 1943 'which was almost the 
exact counterpart of the German law for road traffic in 
Germany. Such a law obviates all necessity for direct German 
intervention in French controls over motor traffic. There 
remains the question of requisition of public and private 
transport facilities for German use. This is accomplished 
by routing the German request to the local Chief Engineer 
for Roads and Bridges, an official responsible to the Secre¬ 
tary of State for Communications. The Chief Engineer then 
passes the request on to enterprises registered with the 
Roads and Bridges Service or with the. Road Transport Group 
(a professional association).^ German authorization is 
necessary for motor transport crossing the frontiers of Oc¬ 
cupied France. A Fahr b ereitschaftsleiter attached to the 
office of the Feldkommandantur (exceptionally, to the office, 
of a nearby Kreiskommandantnr ) issues the necessary permits; 
this official is responsible to the BevollrMchtigte ftlr den 

2 

Nahverkehr in the office of the chief of the military district. 

4. Inland T . Ja. terways . Another adjunct to the railways and 
roads are the inland waterways. These have been exploited 
by French authorities in order to relieve the pressure on 

3 

the railways. The waterways too are under the French 
Secretary of State for Communications and are controlled by 
the National Office of Navigation. Delegates of the Organizing 
Committee for Inland /ater Transport cooperate with the 

lT La Garonne, 23 December 1942 ( News Digest ). 

2. V0B1 ., 19 March 1941, 3 April 1941. 

3. FCC report, 7 August 1942 ( Transocean ). 


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- 74 - 


Office in the control of operations.' 1 ' (As noted above, a 
German commissioner is attached to each Organizing Committee.) 

No contract for inland water transport is valid unless counter¬ 
signed by the regional director responsible to the Office 
2 

of Navigation. An example of German interference with 

waterway traffic is an order, probably given for security 

purposes rather than as a traffic control, of the Feldkom - 

mandant of Besanqon forbidding traffic on t -paths between 
3 

certain hours. 

5. Commercial Aviation . French commercial aviation was 
most drastically affected by German orders. By the terms 
of the Armistice, all flights over French territory were 
absolutely forbidden. Even in the Vichy Zone, representa¬ 
tives of the Armistice Commission were given absolute con- 
trol over all airfields (Article XII). These terms were 
relaxed gradually until in the spring of 1942, a number of 
airmail services operated in France and from France to 
Tunis and Mesbaden. Passenger service of a plane a day 

in each direction over the circuit Vichy-Toulouse-Marseille- 
Lyon-Vichy is maintained, as well as a service between 
Paris and Vichy. The German Armistice Commission gives 
permission for such operations, which are carried on by the 
Re'seau Aerien Franpais a company under the control of the 
French Government through a Department of Airports. 

6. Maritime Shipping . Drastic measures were also taken 
by the Germans with regard to ocean navigation. The Ar¬ 
mistice required that all commercial and harbor vessels in 
French ports remain there until authorized by German and 

1. Tissier, p. 859'. Law published 23 November 1940. 

2. Ibid . Law published 8 May 1941. 

3. Le Petit Comtois, 25 Maich 1943 (News Digest,' 3 April 
1943V 

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- 75 - 


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Italian authorities to sail again. All French vessels 

outside French ports were to be directed to return and 

place themselves under similar surveillance (Article XI). 

Representatives of the Armistice Commission were to control, 

and still continue to control, the cargoes of Incoming ships. 

Nothing may leave a ship until these inspectors have decided 

what part of the cargo is to be sent on to Germany. At the 

time of the occupation of the former Unoccupied Zone, German 

and Italian authorities seized all except eighteen French 

commercial vessels. Those left to the French are of small 

tonnage. They are operated by French companies under the 

nominal control of the French Government but are very closely 

supervised by German authorities. It is threatened that if 

any of the ships makes an unscheduled call, reprisals will 

be undertaken against the crews and their families of all 
1 

the, ships. 


1. Fr ue Franct; , 1 llarch 1943. 


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- 76 - 


V. ANTI-JEWISH LEGISLATION 

A. Anti-Jewish Measures in General 

Anti-Semitic activity followed immediately upon the 
entry of the Germans into France. The Jew-baiting Au Pilori 
("To the Pillory") was published, and anti-Semitic demonstra¬ 
tions were organized on the Champs-Elysees and the main boule¬ 
vards of the capital.' 1 ' A law of August 1940 repealed the 
Press Law of 1837, prohibiting press attacks upon individuals 
on religious or racial grounds. 

This preliminary propaganda was soon followed by direct 
action. Until France was completely occupied (November 1942) 
the German anti-Jewish strategy was as follows: 

(1) to provoke anti-Semitic appeals and propaganda in 
the German-controlled press; 

(2) to follow up this propaganda by specifically German 
anti-Semitic measures to apply only in the occupied zone; 

(3) to bring pressure on the Vichy government to obtain 
the extension of these anti-Semitic measures to all of France, 
on the threat that, if they were not extended, the fate of 

the Jews in the occupied zone would be made still worse; 

(4) to follow the extension of these anti-Semitic 
measures by new measures in the Occupied Zone, and so on. 

B. German Anti-Jewish Legislation in Occupied France and 

Alsace-Lorraine 

2 

On 21 and 27 August 1940 Gestapo agents in Paris made 
the rounds of the leading Jewish organizations, including 
the Jorid Jewish Congress, the Jewish National Fund, and the 

ll Jewish Affairs (published by the Institute of Jewish 
Affairs’]^ September 1941, p. 4. 

2. Jewish Affairs , September 1941, p. 4. 


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77 - 


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Ecole Rabbinique. On 3 and 28 November the offices of the 
Alliance Israelite Universelle and of the Jewish Telegraphic 
Agency were raided, and some sixty thousand volumes from the 
libraries of the Alliance and the Ecole Rabbinique were re¬ 
moved to the Institute -for Research on the Jewish Problem in 
Frankfort.^ On 13 September children 1 s'- homes administered by 
Jewish we-lfare agencies'were confiscated, while' in Paris most 

o 

synagogues were closed. 

These.preliminary steps were followed by the intro¬ 
duction of formal G-crmah aiiti-Jewish legislation: 

(l) An: initial decree ; issued on 27 September prohibited 
all refugees profcasing either at present, or in the'past the 

Jewish religion, or having more than two Jewish grandparents, 

t • ( 

from returning to the Occupied Zone. 

, (2) ."Jews Were ordered to register with the authorities 
before 20 October and to have- identity cards stamped with the 
word "Jew.I v 

(.5)' 'Ey the end of October - 1940 every' Jcwish-owned busi¬ 
ness was to be marked distinctly as a "Jewish Enterprise. 
Leaders of Jewish communities were required to supply the 
authorities - , with :all - materials and documents'necessary for the 
execution of this measure. -Many Jewish businessmen, obliged 
to post the "Jewish Enterprise 1 ' mark on their windows, simul¬ 
taneously posted excerpts of their military-'citations for 

acts of bravery either in 1914-13 or in 1939-40. 'This, however 

4 ..... ....... 

was soon forbidden by .the .Germans. - 

(4) On 18 October, a new de-cr-ec'ordered the registration 

XT Jcuish Affairs, September 1941, p. 4. 

2. Ibid . ■- . 

3. Ibid . 

4. Ibid . 

: ■- • • restricted 










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- 78 - 

of all Jewish concerns, and on 12 December 11 Aryan' 1 Commissars 
in charge, of them, were appointed. . 

(5) On 26 April 1941 a new order revising the terms 
of the original decree of September defined a Jew as anyone 
having at least three Jewish grandparents, or anyone having 
but two, if he or she were currently so affiliated or had a 
Jewish spouse. All persons falling within the new categories 
were required to comply with the consequent regulations by 
30 May. 1 


(6) Jews were forbidden, as from 20 May to engage in 
wholesale and retail commerce, .restaurants, the hotel business, 
insurance, tourist agencies, carrier services, banking, ad¬ 
vertising, real estate, mortgage transactions, and employment 
bureaus. They were prohibited also from acting as commercial 
travellers and high officials in any establishment, or from 
accepting any position which might bring them into direct 

i 

contact with customers or clients. Even in other forms of | 

I 

employment, Jews were to be replaced by “Aryans” on the demand j 


of G-erman military authorities. 

As a result of these German.measures, practically all 
Jewish enterprises in the -Occupied Zone were quickly put under 
the administration of “Aryan Commissioners.“ The arretes 
appointing these Commissioners were, however, usually passed 
upon by the Vichy Government, namely, the Secretary of State 
for Industrial Production and. Labor. A Vichy French decree 
of 10 September had provided for the' appointment of advisory 
administrators whenever the legal owners’of-a business firm 
were “unable” to exercise their normal functions. It is 
pursuant to this decree that the Commissioners were appointed, 


1. Jewish Affairs, p. 5. 


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- 79 - 


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since the real owners were unable to exercise their functions. 

A new stage in the persecutions started on 13 March 
1941, when all jews living in the northern coastal district 
were summarily expelled from their homes and interned in con¬ 
centration camps in the. departments of.Yonne’and Aube .^ 

Somewhat latter, foreign Jews in Paris were seized and sent to 
the concentration camp of Pithiviers, near Orleans. 

The internal administration of the Jewish community 
in occupied France remained nominally in the hands of the 
Consistory, headed by Chief-Rabbi Julian Weill. In October 
1940 the Germans appointed as Commissioners for Jewish Affairs 
Lieutenants Danaker and Lumper of the SS Guard, and efforts 
were made by the Nazi authorities to organize'Parisian Jewry 
into a closed community in cooperation with the Jews; these 
attempts, however, failed as the French law did not recognize 
religious communities. The Germans even introduced Austrian 
Jews with a view to indoctrinating French Jews, but this 
measure failed too. 2 German persecutions of Jews were especially 
severe in Alsace-Lorraine.- 

On 13 July 1940,.the fortunes of Jews and Frenchmeh 

formerly in Alsace-Lorraine were officially declared to belong 

“to enemies of the.Reich and the German people," and on .6 August 

German Commissioners were appointed to take charge of those 

industries and enterprises in which the so-called “enemies" 

were represented. Subsequent decrees defined the term “Jew" - 
v ••••■' 

and placed under trusteeship all concerns owned outright or- 

controlled mainly by Jews and Frenchmen. On 19 October Jews 

in Alsace-Lorraine were, excluded from small pensions and social 

T~. Jewish _ Affairs, p. 5. 

2. Ibid. 


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RESTRICTED• 


80 - 


insurance schemes arid, later, from unemployment relief. On 
10 March- 1941 they -were declared ineligible for the state sub¬ 
sidies granted to children of large families.. A decree- of 
10 April 1941 prohibited the slaughter of .animals in accordance 
with Jewish ritual requirements. A decree of 15 January 1941 
declared forfeit the property of all who had fled,to France.' 1 2 3 ' 

On 1 June 1941 all Jews in the. Occupied Zone were com¬ 
pelled- to wear the'Star of David.- In July.1942 Jews were 
banned from..places, of. entertainment, such as restaurants, cafes, 
cinemas, 'etc. . They,, were also prohibited, from using certain . 
main thoroughfares in Paris such as the Champs-Elysees. In 
October 1942 Jews living in or near Paris were forbidden by 

German occupation authorities from entering food stores ex- 

2 

cept forg one hour a day. 

CL.. French Anti-Jewish Legislation 

A series.of laws and decrees which did not primarily 
concern the Jews, but of which the Jews were indirectly the 
chief victims, were.enacted.directly after the Armistice. In 
July 1940 nex* conditions were laid down for the withdrawal 
of citizenship, and.the revision of all naturalizations granted 
on the basis.of the law of 10 August 1927 was ordered. Another 
order, lb September 1940, limited state employment to those' 
whose parents were Frenchmen, exception being made only in 
the case of. World War veterans. The same principle was applied 
to physicians (laws of 16 August and 28 October 1940) to 
veterinary surgeons (laws of 17 November and 11 December 1^40, 
and of 24 January 1941), and to lawyers (decree of 10 Septem¬ 
ber 1940). These measures bore heavily on Jews of foreign 

parents or foreign birth, particularly among physicians and 
lawyers^* 

1. Jewish Affairs , pp. 5-6. 

2. New Yorh Herald Tribune, 31 October 1942. 

3. JewisIT~Affairs , p; 37. 


. RESTRICTED 
















81 - 


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All this was crowned by the first comprehensive French 
anti-Jewish Statute of 3 October 1940. To this end German 
pressure was relentless, negotiations being opened between 
Vichy and the Reich directly after the armistice. It is said 
that some efforts were made by the French Government, ancl. even 
by Retain, to save the so-called "French Jew§" that is, those 
whose families had been established in France for a certain 
time, for example, since .1870 or 1789, or three‘or five genera¬ 
tions. The Germans rejected' these -attempts and the Statute 
was finally signed: on 3 October and published on 18 October. 

The Statute-was. further modified on 2 June 1941. 

A Jew^ is now defined as any person descending from at 
least three Jewish grandparents, or from two if his or her 
spouse be likewise descended from two Jewish grandparents, or 
if he or she had not been baptized prior to 25 June 1940. 

Jews are debarred from governmental and elected posi¬ 
tions as well as from the high civil service posts. They may 
not serve as judges, teachers, diplomats, officers, soldiers, 
or sailors, nor may they occupy any important position in an. 
institution subsidized or controlled by the state (c.g., public 
utilities or welfare agencies). Jews are likewise excluded 
from all other posts (even loiter), unless they have been 1914-^ 
18 veterans in'the combat zone, or have been cited during the 
campaign of 1939-40 as entitled to the "Croix de Guerre," or 
have been awarded the "Legion d^Honneur" for military reasons 
or any military honor. 

Jews may practice the liberal professions or engage in-' 
commerce, industry, or handicrafts only within limits or under 
conditions established by decrees. They may not serve as 

T. Journal OTficicl , 18.October 1940 and 4 June 1941. 

■ —RESTRICTED 







RESTRICTED 


82 




commission agents nor may they be active, in banking,....brokerage 
or forestry. They, may not publish, edit, or nana'go periodical 
unless of scientific or religious character,, nor may they 
play any part in the production and distribution of films or .7 
the management of theaters, cinemas, and radio stations. 

Exemption may. be granted only to persons who have- ••ren¬ 
dered special services to the state or whose families have . 
been resident in France for at.least five, generations and have 
earned special distinctions for benefits conferred upon the 
country. But such exemptions., very rare in any case,, are of 
a strictly individual character, and. no advantages deriving 
therefrom may be conferred upon relatives. 

Prefects are empowered to intern any Jew who violates 
regulations, even if he., be a French citizen. 

To coordinate .anti-Jewish legislation, a Commissariat 
for Jewish Affairs was set up on 29 Karch .1941 under-Xavier 
Vallat, a former Rightist deputy and lawyep.^ The functions 
of the new Commissariat, defined on 19 Kay, were to suggest to 
the Government all laws and decrees necessary for regulating 
the Jewish problem and implementing the Jewish Statute, and 
also to coordinate the anti-Jewish activities of the several 
ministries, to supervise the liquidation of Jewish properties, 
to appoint commissioners, and to control police regulations 
concerning Jews. 

On 21 June 1941, a 'humerus-clausus," introduced in all 
universities ard colleges, restricted the number of admitted 
Jews to 3 percent of the total registration. On 17 July 
Jewish lawyers were limited to 2 percent of the total, and on 
5 September the same regulation was applied to physicians. 

Journal 0~ffT^Iir 7~51 Karch 1941. 


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- S3 - 


RESTRICTED 


Following the general registration of all Jews in Unoc- 
1 

cupied France, a Vichy decree of 26 August 1941 ordered the 
sale of Jewish businesses, together with their merchandise 
and other properties, and authorized Xavier Vallat to appoint 
provisional managers to control them. The decree covered all 
industrial, commercial, and artisan undertakings and all leased 
premises, exempting only state bonds and residential proper¬ 
ties. The proceeds of the sale were to be deposited in the 
owner’s name in a' central government fund, a 10 percent de¬ 
duction being first made to cover overhead charges and to 
provide resources for the relief of destitute Jews. In the 
disposal of property owned in common by Jews and non-Jews 
the latter were to be granted a four-month postponement to 
liquidate their share. 

D. Financial Ileasuros against Jews 

1. Occupied Zone . In the occupied zP no all foreign shares 
and bonds deposited in banks had been frozen by the German 
authorities; those deposited in the safe deposit boxes of 
banks were frozen later as they could not be reopened by their 
French owners without the consent of German authorities. These 
measures, which took place directly after the Armistice, ap¬ 
plied to all Frenchmen as well as Jews. 

A registration of all shares (foreign and French) and 
of all industrial partnerships retained by Jews followed the 
registration of the Jews themselves. According to the decree 
of April 1941, special trustees could be appointed to take 
care of these shares and partnerships, and to sell them. Jews 
were not entitled to receive the product of these sales but 
only "indispensable subsidies”; they were also not entitled to 

XT Journal Oflieiel , 16 June 1941. 


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RESTRICTED 


- 84 - 


any compensation for the losses which resulted from the sales. 

Theoretically, in the Occupied Zone these trustees 
( administrateurs iprovisoires ) were appointed by the German 
authorities according to the ordinance of 20 Hay 1940. But 
following an avis of 7 May 1941, these trustees were to be 
appointed by the French “Service du Controle des Administra¬ 
teurs Provisoires 11 after approval by the German delegate at 
this “Service. 0 

2. Unoccupied Zone . Here nothing was done before the end 
of 1941, except in respect to those French Jews who had been 
deprived of their properties by special decrees of confisca¬ 
tion which generally followed the loss of citizenship. Many 
members of the Rothschild family and other wealthy Jews were 
in that class. From the end of 1941, numerous administrateurs 
provisoires were appointed by the Commissariat for Jewish 
Questions, and they proceeded along the lines described above 
for the Occupied Zone. 

It must be clearly understood that, as long as the 
French Government itself did not recognize a special Jewish 
problem in the management of Jewish properties, the adminis ¬ 
trateurs provisoires were appointed by the Secretary of State 
for Industrial Production, on a temporary basis and solely on 
the ground that Jews were actually unable to take care of theii 
own businesses. This policy was in accordance with the French 
decrees of 10 October 1940 and 16 January 1941, which covered 
not only Jewish properties but all properties the owners of 
which were actually unable to exercise their rights. 

It was only after the creation of the Commissariat 
for Jewish Questions that a change took place and the legis¬ 
lation in then Unoccupied France was unified with that under 
German control. An important law creating the ,r Union G^nc/rale 
RESTRICTED 














- 85 - 


RESTRICTED 


des Israelites de France" was published on 2 December 1941. 

This Union represents the rights and interests of the Jewish 
people with the authorities. All Jews domiciled in France 
arc compulsory members of the Union. Fees are fixed by the 
Commissariat for Jewish Questions according to the means of 
the members. All other Jewish societies had been dissolved 
and their assets transferred to the Union. The only excep¬ 
tions were religious institutions, concerned solely with the 
practice of the Jewish faith. The Union was authorized to 
raise loans not exceeding 250 million francs. The Union 
operated entirely under German domination. 

Following the appointment of Darguier de Pellepoix 
(5 May 1942) to replace Xavier Vallat as head of the Commis¬ 
sariat, matters grew still worse. 

I , x 

It was decided on 28 August 1942 that the Union Gencrale 
should be required to raise six million francs monthly, by 
levy on the Jewish families in Occupied and Unoccupied France, 
to cover its own expenses. 

At the end of June 1943^ a new decree deprived an es¬ 
timated one hundred thousand Jews of French citizenship; under 
it, all Jews naturalized in France since 1927 were to be de-* 
prived of citizenship rights. 

On 20 January 1943, it was decided that Frenchmen 
considered as Jews under the law would no longer be allowed 
to leave their residence without previous authorization to do 
so. Prefects may sanction changes of residence. Police 
commissioners and gendarmes may issue travel permits. In no 

17 Journal Officiel , 5 September 1942. 

2. Christian Science Monitor, 25 June 1943; Havas , 19 December 
1942. 

3. Radio Lyons, 20 January 1943. 


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RESTRICTED 


* 86 - 


case were Jews to be allowed to settle in the future in the 

following departments; Allier, Puy-de-Dorne, Haute-Savoie, 

Alpes-Haritimes, Var, Bouche-du-Rhone, Gard, Herault, Aude, 

Pyrdneejs-Orientales, Ariege, Haute G-aronne, Haute s-Pyrene'es, 

✓ / 

Basses-Pyrenees. 

In the winter of 1943 a course in Jewish History was 
inaugurated at the Sorbonne under a certain Labroue.^ The 
idea was to inform every student of the Jewish question; in an 
interview, Labraue.even advocated instruction in the Jewish 
question in primary schools. 

Up to the summer of 1942, it was the foreign Jews in 
both zones who had borne the brunt of anti-Semitic measures. 

In May 1941, five thousand foreign Jews were rounded up in 
Paris and sent to concentration camps, and in December 1941 
thousands of Jews who had entered the country since 1936 
were arrested. 

Under German pressure the French Government, as early as 
July 1940, withdrew the protection of French citizenship from 
aliens who had joined the French Army. A special ordinance 
of 4 October 1940 regulated as follows the position of foreign 
Jews in France; 

(1) Foreigners of Jewish extraction might be interned I 
in special camps on the decision of the prefect of the depart- j 
ment in which they were residing. 

(2) They could at any time be compelled by the prefect 
to take up forced residence. 


1. Radio Lyons, 20 January 1943. 
RESTRICTED 







- 87 - 


RESTRICTED 


Appendix A. GERMAN OFFICES AND PERSONNEL 

(The following lists are not to 
be taken as complete in any sense. 

In many cases persons or offices 
may have been shifted about after 
the date of the information given.)' 


Offices 


1. Offices in Paris 


Armistice Commission 
Auslands Organisation der NSDAP 
Landesgruppe Frankreich 
Deutsche Arbeitsfront A.O. 

Beratungsstelle fdr Volksdeutsche 
Deutsches Beschaffungsamt in Frankreich 
Deutsches Nachrichtenbiiro (DNB) 

Deutsches Roter Kreuz 
Deutsches Verkehrsbdro 

Dienstetelle des Kolonialpolitischen Amtes 
Embassy ' 

Consulate 
Passport office 
Institut Allemand 
Kommandantur of C-reater Paris 
Krankenverteilung-UnfallmeIdestelle 
Military Governor of France, office of 
Kommandostab 
Verwaltungstab 

Oberquartiermeister Frankreich 

Office for the Declaration of American Property 
Office for the Declaration of Enemy Property 
Organisation Todt; office of Oberbaurat 

Police; office of. Hbhere SS und Polizcifdhrer 
Reichsregierung fUr das deutsche Verm6gen in 
Frankreich 

Verbindungsstelle der Bauwirtschaft im 
besetzten Weston 
Verbindungsstelle Frankreich 
Wehrmachtsformularverlag 
Wehrmachtstheaterkasse 
Wehrwirtschafts- und Rustungsamt 
Wirt s chaf t s gruppe Mas chine nbau 
Zentralauftragsstelle 
Leichtmetallburg 
Flugzcugteile 
Aerodromes Allemandes 

2. Offices in Vichy 


Sub-office of Gestapo 
Consular office 

Representative of Commander in Chief of Western Army 


RESTRICTED 







RESTRICTED 


88 


3. Other Provincial Offices (these lists are obviously 

far from complete) 


Oberfeldkommandanturen 

#592 reported at Laon, July 1940 
#670 reported at Lille, March 1943 

Feldkommandanturen 

#517 reported at Rouen, March 1941 

#529 reported at Bordeaux, November 1942 

#530 reported at St.-Dizier, March 1943 

#531 reported at Chalons-sur-Marno, March 1943 

#541 reported at Biarritz, November 1942 

#549 reported at Rennes, March 1941 

#588 reported at Le Mans and Angers, July 1942 

#591 reported at Nancy, February 1943 

#595 reported at Angers, December 1942 

#602(F) reported at Laon, 1940 

#605(V) reported at La-Roche-sur-Yonne, 

January 1942 

#622 reported at Epinal, April 1943 

#638 reported at Beauvais, November 1942 

#651 reported at Niort, March 1943 

#669 reported at Dijon, March 1943 

#677 reported at Poitiers, March 1943 

#678 reported at Lille, March 1943 

#680 reported at Melun, January 1941 

#684 reported at Charleville, November 1942 

#718 reported at Douai, March 1943 

#722 reported at St.-Lo, April 1943 

#723 reported at Caen, March 1943 

#734 probably in Paris area, November 1941 

#750 reported at Vannes, August 1942 

#751 reported at Chartres, October 1942 

#754 reported at Flcrs, March 1942 

#755(V) reported at Le Mans, October 1941 

#758 reported at Marseille, January 1943 

#788 reported at Tours, March 1943 

#801 reported at Evreux, May 1943 

#814 reported at Rouen, March 1941 


A report of no particular reliability states that 
there is a Feldkommandantur for Finistere Department, 
located in ^uimper. 


Kreiskommandanturen 

#563 reported at Dijon, July 1942 
#593 reported at Nancy, March 1942 
#623 reported at Brest, April 1942 
#633 reported at Lille, January 1943. 

#637 reported at Le Havre, June 1942 
#704 reported at Marseille, March 1943 
#713 due to depart Montrevel, September 1942 
#781 reported at Fontainebleau, July 1941 

Ort skommandanturen 

#735 reported at Lorient, August 1942 
#1/914 reported at Lille, March 1943 

A report from September 1942 indicates an 
Ortskommandantur at Dax. 


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- 89 - 


RESTRICTED 


Feldgendarmerie offices reported at: 

Chartres 

Morlaix 

Quimper 

Perigueux 

Gestapo offices reported at: 

Toulon • 

Rennes^ 

Ploare' 

Quimper 

Perigueux 

Kommandanturen of unspecified type are reported 
in Pontarlier, Perigueux, and Dinan. 

A military tribunal at Arras is described. 

A Hafenkommandant is reported at St. Brieuc. 

An economic mission is reported at Toulouse. 

Rundstedt, Commander in Chief of the Western Army, 
has headquarters at Montpellier. 

Branches of the Armistice Commission are located 
at Nice, Toulouse, Aix-en-Provence, Marseille, Lyon. 

Offices of the Reichsland (formerly Ostland) 
society are located in Amiens, Charleville, Nancy, Dijon. 

B. Personnel 


Name 


Title or Position 


Abetz, Otto 

Ahlborn • (Major) 

Adolph (Major General) 
Barckhausen (Lieutenant 
General) 

Becker 

von Bemberg-Langfeld 


Beur (Captain) 

Blum 

3ohme 

Bosse 

Brockhues, Friedrich 
Bernhard 
Buscher 

von Collenberg, Ruedt 
(Major General) 
Donath 

von Eckstadt, Count 
Vitzthum (Colonel) 


German Ambassador in France 
(recalled end of 1942) 

Member of staff of Beschaffungsamt 
in Frankreich 
Feldkommandant von Mans 
Chef der WiRd 

Member of Kulturdirektion in Paris 
Military Commander of Paris, ap¬ 
pointed May 1943 (succeeds 
Schaumberg) 

Chief of department of Haute- 
Garonne 

Head of Gestapo office at Rennes 
Chief of Staff to President of 
Armistice Commission 
Representative of Reich Ministry 
of Armaments and Munitions 
Member of staff of WiRd 

Counselor of legation 
Head of Armaments Inspection 
at Paris 

Oberbaurat, Organisation Todt 
Head of Armaments Inspection at 
Dijon 


RESTRICTED 








RESTRICTED 


- 90 - 


Name 


Title or Position 


Epting, Karl 
Fischer 

Fleischman (Commandant) 
Fuchs 

Furbinger (Captain) 

Grizeck 

Hein 

Hemmen 


Henrici (Captain -- 
naval) 
von Heute 
van der Heyde 
Hoch 

von Hofacker (Oberst- 
leutnant) 

Hoffman 

Holthauss 

liolzmann 

Hugo 

Hund 

Jacoby (Major General) 
Kahl /spelling doubtful/ 
Klein (Commandant) 

Knockcl 

Koch 

Krassel /spelling doubt¬ 
ful/ (Captain or Major) 
Kreiner 
Kruess 
Kuntzc 

Lassine 

Last 

von Lavergne (Oberst- 
leutnant) 

Lehmann (Captain) 

Lochte 

Maier (Lieutenant) 

Mangi (Lieutenant) 
von Metternich (Graf) 
Michel 

Missfolder /spelling 
doubtf.uy "{Colonel) 


Director of Institut Allemand 
President of German Economic 
Chamber, Paris 

President of military tribunal 
at Arras 

Member of Kulturdirektion in Paris 
Councillor of military tribunal 
at Arras 

Officer of Leichtmetallburg 
Inspector for military tribunal 
at Arras 

Chairman of German Economic Sec¬ 
tion, Franco-German Armistice 
Commission 

Head of Armaments.Inspection at 
Amiens (Angers?) 

Director General of Leichtmctallbu: 
Director General of Leichtmctallbu] 
Attached to French security police* 
Toulouse 

Member of staff of Kilitarbe- 
fchlshaber 

President of Verbindungsstelle 
Frankreich 

Officer of Leichtmetallburg 
Member Luftgaukommando, West 
Inspector of military tribunal 
at Arras 

Officer of Leichtmetallburg 
Feldkommandant von Rennes 
Gestapo agent at Quimpcr 
Chief councillor of military 
tribunal at Arras 
SS. Oberftihrer in Paris 
Head of Verbindungsstelle der 

Bauwirtschaft in besetzten Wester 
Kommandant at Korlaix 

Officer of Leichtmetallburg 
Head of Kulturdirektion in Paris j 
Member Economics Section, German • 
Emba^y, Paris 
Kommandant at Pontardicr 
Inspector for military tribunal 
at Arras 

Member WiRii staff 

Commanding Officer in Chartres 
Officer oi Leichtmetallburg 
Member of Propaganda Staffel in 
charge of illustrated press 
In charge of Feldgendarmerie, 
Morlaix 

Cultural attache*^at German Embassy, 
Paris 

Chef der Wirtschaftsabteilung 
(Verwaltungstab) 

Commanding officer for region of : 
Morlaix 


RESTRICTED 










- 91 - 


RESTRICTED 


Name 


Title or Position 


Naschold 

Nelkeri (General) 

von Neubrunn (Lieutenant 
General) 

von Nidda, Krug 
Niehoff' 

Nothelfer (Captain) 

Nuemann-Neurode (Lieu¬ 
tenant General) 

Oberg, Karl Albrecht 
(Police General) 
Peitzsch 

Pereinner 

Pierburg, Alfred 

Radernacher 

Rahn 

Ramm (Oberstleutnant) 
Razeldorfer (Captain) 
Reichmann 

Reimers, Hans Gothfried 
Ringel, Karl Robert 

Roos 

von Rundstedt, Karl 
Rudolf Gerd (Field 
Marshal) 

von Schaumberg, Ernst 
(Lieutenant General) 

Schleier, Willi or Rudolf 

Schmidt 

Schmidtke 

Schmitt (Major) 

Schwendemann 

von Spangeren 

Speidel (Oberst) 

Streiger 

Stuiber (Captain) 

von Stttlpnagel (General) 
von Stunzer (Colonel) 
Tannen (Major) 

Thoennissen (General 
Major) 

Turn (Lieutenant) 

Vogl (General) 

Warcholtz 


Winter, Eduard 
Zinselsmayer 


Attached to Verbindungsstelle der 
Bauwirtschaft im besetzten Westen 
Chief of German economic mission, 

■ Toulouse 

Representative of Field Marshal 
von Rundstedt in Vichy 
German representative- in Vichy 
OberfeIdkommandant in Lille 
Councillor of military tribunal 
at Arras 

Chief of Military District B 
(Angers) 

Hbhere SS. und Polizeifiihrer 

Member of German Economic Chamber, 
Pari s 

Inspector for military tribunal 
at Arras 

Member of staff of WIRtt 
Commissioner for city of Paris 
Attache' at German Embassy, Paris 
Member of staff of Beschaffungsamt 
in Frankreich 

Councillor of military tribunal 
at Arras 

Attached to office of French high¬ 
way police, Toulouse 
German military lawyer in Bordeaux 
Sonderbeauftragter, Verbindungs- : 
stelle Frankreich 

In charge of German security police 
Commander in Chief of Western 
Army - group 


Kommandant von Gross-Paris (re¬ 
ported killed by French patriots; 
succeeded by von Bemberg-Langfeld) 
German Minister in France 
Chef der Verwaltungsstab 
Chef des Propagandaabteilung 
(Verwaltung s s tab) 

Member of staff of Beschaffungsamt 
in Frankreich 

Counselor of German Embassy in 
Pari a. 

Kreiskommandant with authority in 
Cherbourg 

Chief of Kommandostab 
Officer of Leichtmetallburg 
German chief labor recruiting 
officer, Evreux 

Milit&rbefehlshaber in Frankreich 
Commandant of Paris 
Member of staff of Beschaffungsamt 
in Frankreich 

Chief of Beschaf fungsamt in •• 
Frankreich .. 

German Labor Office chief±1 Chartres 
President of Armistice Commission 
Attached to French office for pro¬ 
tection of industrial property, 
Toulouse 

Member of staff of WIRil 
Chief of central office of French 
labor for Germany RKSTRICTED 






Appendix B. GERMAN CONTROLS OVER FRANCE 


RESTRICTED 


- 92 - 



RESTRICTED 





























































































































- 93 - 




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